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

US TSYS/BILLS
US TSYS/BILLS: Jefferies economist Tom Simons noted today's 3-month bill auction
"stopped 1 basis point short at 1.105%. This is the highest yielding 3-month
bill auction stop since July 24th, when investors were avoiding October
maturities for fear of debt ceiling complications."
- He added the WI 3-month "was selling off heading into the auction, but it
found plenty of demand at 11:30AM. Overall this was a very solid auction,
similar to last week." He added that "the 3.20 bid cover is the highest since
Aug. 14th" while "indirect bidders took down 47.7%, which is their largest
takedown since Aug. 14th. Directs took down 10.2%, which is at the upper end of
the recent range. Dealers took down a 42.1% which is their smallest takedown
since Aug. 14th."

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