Jefferies economist Tom Simons noted.....>

US TSYS/3Y: Jefferies economist Tom Simons noted today's $24B 3-year note

auction "stopped at 1.750%, which is 0.1 bps below were the 11:30AM WI was bid

at 1.751%. This is the highest yielding 3-year auction since April 2010."

- He adds "the size of today's auction is the same as last month's auction at

$24 bln, and it will pay down $2 bln when it settles on November 15th." He said

auction stats "were almost dead-on average" as "bid cover came in at 2.76, very

close to average. 

- "Indirects took down 53.5%, compared with a 12-month average of 53.6% coming

into today," he said. "Directs took down 9%, compared with a 12-month average of

8.5%."