Nomura analysts think 1pm ET 30Y........>

US TSYS/30Y: Nomura analysts think 1pm ET 30Y auction could "receive demand."

They cite "30s are rich both outright (where they are now sitting on top of the

long-run Fed dot levels)" and due to "extremely sharp flattening of the curve." 

- They add that "after a strong 10yr refunding auction," the 30-yr sale "cld

also receive good demand because the real interest in duration has been more in

30s vs 10s. October long-end UST stripping outstanding data are at new highs,

suggesting risk appetite for duration. We think that the momentum into the

backend of the UST curve will not be over in the short run but could burn out,

as was the case in the summer of 2016. After Brexit and the near-low yields,

there was also strong stripping activity followed by a strong 30yr auction. This

pattern could be repeating" plus "cld be good demand for 30s now that the Tsy is

likely to delay the issuing of an ultra-long bond." 

- They feel investors' "only concern" is "valuation (which we also believe is

getting on rich side) for both the outright level of rates and the flatness of

the curve;" they don't "think that will play a role in preventing a solid

auction outcome."