JPM analysts Jay Barry and Jason.....>

US TSYS/SUPPLY: JPM analysts Jay Barry and Jason Hunter eyed the Wed 11:30am ET

US$24B Treasury 3Y auction and 1pm ET Wed $20B 10Y reopening auction. "The

September 3-year auction cleared 0.9bp cheap to pre-auction levels, with

end-user demand falling to 56.6%, the lowest level since December 2016," they

said. "The weakness in end-user demand was mainly driven by a decline in foreign

sponsorship, which fell 10.6%-pts to 14.8%, the lowest level since December

2016. Meanwhile, the September 10-year auction cleared 1.0bp cheap to

pre-auction levels, as end-user demand fell to 61.3%, the lowest level since

November 2016, mainly driven by a 6.8%-pts decrease in investment manager

participation."

- "Since the September auctions, 3- and 10-year yields have risen by 20bp and

16bp, respectively, and are trading near their highest levels in 6 months. The

WI 3-year roll opened at +2.5bp and is now trading at +2.375bp, underperforming

the erosion of carry."