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Jefferies economist Ward McCarthy......>

US TSYS/TIPS
US TSYS/TIPS: Jefferies economist Ward McCarthy said "today's $14 bln 5-year
TIPS reopening attracted very strong buyside interest, and stopped at 0.37%, 3.5
bps below the 1:00PM WI bid of 0.405%."
- He added that "the 2.78 bid/cover ratio is on the high side compared with
recent auctions. The Indirect takedown of 71.7% is well above average."
- He said that the "dealers took down 16.1%, well below the prior record low
16.7% in April. The Direct takedown of 12.2% is the largest since the December
2013 reopening."
- McCarthy said that the "short stop, large buyside involvement and the low
Dealer takedown are encouraging signs for a quiet holiday and suggests that
distribution should go just fine from here."

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