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

US TSYS/7Y
US TSYS/7Y: Jefferies economist Tom Simons said today's "ugly" 7-year note
auction "stopped 1.8 bps above where the WI was bid at 1:00PM, at 2.230%."
- He added "indirects took down 58.6% of the auction, which is their smallest
takedown since August 2016. On the other side of the coin, Dealers took down
27.7% of the auction, their largest takedown since September 2016."
- He added that "directs were closer to average, but still relatively soft with
a 13.7% takedown. The big buyers that were around in August and September have
been noticeably absent in October and November."
- Simons said that "normally, the 7-year is a good bet to rally into month-end,
but dealers are stuffed with paper after this auction so it should actually see
further selling pressure."

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