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

US TSYS/10Y
US TSYS/10Y: Nomura N.American head of rate research George Goncalves and
analysts Stanley Sun and Penglu Zhao expect "healthy demand" at today's 1pm ET
US$23B 10Y auction but "it is unlikely to be as strong" as at the $24B 3-year
note auction done Tuesday. 
- The Nomura analysts said that "renewed geopolitical concerns could help
support auction demand" and that "valuations on the curve still look
attractive." 
- But they cautioned that "positioning suggests the curve may steepen,
especially as the market's expectation for ECB tapering continues to draw
closer." Also "foreign takedowns for 10yr have been declining recently, as they
may have shortened their duration exposure," they said.

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