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

US TSYS/BILLS
US TSYS/BILLS: Jefferies economist Tom Simons noted the US Treasury "just
announced a $35 bln 4-week bill for auction tomorrow at 11:30AM. The size of the
auction is $15 bln larger than last week and it will raise no new cash when it
settles on Thursday."
- He is "still looking for Treasury to announce CMBs in order to replenish both
cash balances and bill supply. However it does not appear that Treasury made any
such announcement this morning."
- Simons said that "inclusive of the CMBs that are going to mature on Friday,
Sept. 15th, we expect that bill supply will drop $42 bln on the week. This steep
drop, combined with the suspension of the debt limit last week makes for a very
ripe situation for more CMBs."

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