Jefferies economist Tom Simons noted.....>

US TSYS/2Y: Jefferies economist Tom Simons noted today's $15B 2Y FRN auction had

"strong indirects, small short stop" as it "stopped at a discount margin of +4.8

bps, which is 0.2 bps short of where the WI was bid at 11:30AM. This was a very

orderly auction and consistent with the performance we've seen over the past 2

years.:

- He adds the 2Y FRN "auction is a new issue. Upon settlement, there will be a

$26 bln pay down owing to the pattern of issuance, quarterly new issues with

monthly reopenings. The 3.56 bid cover is the highest since December 2016."

- He said that "indirect bidders took down 60.2% which is their largest takedown

since June. Direct bidders took down 0.7%. They are often non-factors in these

auctions and today was no exception. The 39.2% Dealer takedown is at the low end

of the recent range."