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J.P.Morgan Suggest 7-Year Supply Will Need Above-Avg. End-User Demand

US TSYS

J.P.Morgan note that Thursday will see “Treasury auction $38bn 7-Year notes, $2bn smaller in size vs. last month. 7-Year yields are now 49bp lower since the June auction. The WI roll opened flat and is now trading close to -0.56bp. With the event risk of the FOMC out of the way, this could be a reason for investors to use tomorrow’s auction to add duration. However, with yields at the low end of their recent range and liquidity conditions still quite weak, it will likely take above-average end-user demand to underwrite this 7-year auction in a seamless fashion.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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