JPM analysts noted Treasury will.........>

US TSYS/7Y: JPM analysts noted Treasury will auction $28bn 7-year notes at 1pm

ET. They noted that the August 7-year auction "stopped at 1.941%, 0.6bp through

pre-auction levels as end-user demand rose to the second-highest level on

record, driven mainly by a surge in foreign participation of 12.1%-pts from the

previous month." 

- JPM analysts said 7Y note yields "have risen by over 19bp since the August

auction, and are now trading near the higher end of their 3-month range. The

7-year sector looks modestly rich after adjusting for the level of rates and the

shape of the curve." 

- "Given the recent rise in yields, we think that tomorrow's auction should be

absorbed with relative ease," they said.