JPM analysts noted on today's 1pm ET....>

US TSYS/30Y: JPM analysts noted on today's 1pm ET $15B 30Y bond auction (new)

that since the Oct. 30Y bond reopening auction, the "30-year yields have

declined by approximately 9bp and are 20bp below their highest levels in late

October. Certainly some of this has been driven by changing Fed expectations:

over the last 3 months, 10s/30s has been counter-directional with 2-year yields,

flattening as markets price more Fed tightening and front-end yields rise, and

vice versa." 

- They add however a chart "shows that the curve has flattened by more than

would be implied by the rise in 2-year yields. We think at least some of this

reflects shifts in Treasury issuance expectations, as Treasury Secretary Mnuchin

last week indicated ultra-long bonds might not make sense," and Nov. refunding

announcement "indicates to us that Treasury is more likely to focus increased

issuance at the front end rather than across the curve."