Nomura N.American head of rate.......>

US TSYS/SUPPLY: Nomura N.American head of rate research George Goncalves said

ahead of the Wed 8:30am ET US Tsy refunding announcement, "all eyes will be on

future US Treasury supply needs. In terms of ultra-long issuance, we expect the

Treasury to keep options open and not announce anything specific anytime soon.

Also, we expect T-bills to do a lot of the heavy lifting in facilitating

financing needs in the early days of SOMA rolloffs."

- He adds that "bond markets got defensive about the debt ceiling much earlier

this time. For now, the action was localized to T-bills, but UST coupons may be

affected down the line. The difference now is money funds have more T-bill

focus, and the Fed is tightening. We expect eventual resolution but it could

drag on if other matters take precedent in DC."