Jefferies economist Tom Simons.......>

US TSYS/SUPPLY: Jefferies economist Tom Simons said "today's $13 bln 2-year FRN

reopening stopped at a discount margin of +6 bps, which is right where the WI

bid at 11:30AM. This was not a particularly strong auction."

- He adds the "depressed yields in the 3-month sector of the (bill) curve seemed

to reduce investor demand, despite the protection offered by the floating coupon

in the event that the curve normalizes after the debt ceiling is raised."

- He said "the 3.09 bid cover is below the recent average."

- Simons said "indirect bidders took down 50.1%, which is their weakest takedown

since May. Direct bidders took down 0.4%. They are often non-factors in these

auctions and today was no exception. The 49.6% Dealer takedown is above

average."