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JPM analysts Jay Barry and Jason...>

US TSYS/RESEARCH
US TSYS/RESEARCH: JPM analysts Jay Barry and Jason Hunter noted that "looking
ahead, we think that risks to yields appear roughly balanced. First, markets
remain focused on the Fed chair succession, and as we previously discussed,
three front-runner candidates for Fed chair (Warsh, Powell, and Cohn) tilt more
hawkish than current Chair Yellen. Moreover, yields could remain elevated if
Warsh is perceived to be favored by the (Pres. Trump) administration. Second,
supply dynamics suggest modest risks of higher yields."
- They add the US Treasury "will auction 3- and 10-year notes together this
coming Wednesday, and our analysis shows that end-user participation and the
bid-to-cover ratio tend to be lower when 10-year notes are auctioned on the same
day as the 3-year note.

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