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

US TSYS/SUPPLY
US TSYS/SUPPLY: JPM analysts Jay Barry and Jason Hunter eyed today's 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."

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