Jefferies money market economist Tom.....>

US TSYS/2Y: Jefferies money market economist Tom Simons said today's $26B 2-year

note auction "stopped 0.1 bps short of the 1:00PM WI bid in a relatively

impressive auction. Janet Yellen's comments warning about leaving accommodation

in place for too long came less than a half hour before the auction and spurred

a significant curve flattening. Still, the auction went well."

- He added "the 2.88 bid cover is similar to last month but below average.

Indirect bidders took down 44.2% of the auction which is their smallest takedown

since December 2016. Direct bidders took down 19%, their largest takedown since

February 2017. As a consequence of the weak Indirects, Dealers took down 36.8%

of the auction. This is less than last month, but well above the average coming

into the auction."