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

US TSYS/SUPPLY: Jefferies economist Tom Simons noted that the US Treasury also
announced "that they intend to keep coupon auction sizes steady throughout the
quarter, though they will likely be increasing the sizes of nominal coupons and
FRNs (TIPS notably omitted here). It is unusual that Treasury would provide
guidance on issuance for the following quarter, but it makes sense given the
timing of the debt ceiling reinstatement on Dec. 8th. It suggests to us that
were it not for the debt ceiling constraints, Treasury may have increased
auction sizes today."
- He adds the "debt limit continues to constrain Treasury's flexibility in
financing and they urge Congress to raise the debt ceiling as soon as possible.
Treasury continues to expect that they can fund the government through January
- He noted "there was no mention of the ultra-long issuance discussed in
previous quarters, though comments" by US Tsy Secy Mnuchin "earlier this week
suggest that development of the product has been shelved for now."

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