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

US TSYS/30Y
US TSYS/30Y: Nomura N.American head of rate research George Goncalves and
analysts Stanley Sun and Penglu Zhao said on today's 1pm ET US$15B 30Y auction
that "positioning suggests that asset managers continue to accumulate long-end
positions, which might help to channel some demand" into the 30-year bond. 
- But they also cautioned the 30-year bond valuation "still looks rich on the
curve and on ASW, as the liquidity premium, helped by Treasury's reform plan,
lingers. A retracement of risk-off sentiment and a lack of overseas support may
result in some demand weakness. After a weak 10yr refunding auction, we think
the risk of a tail for the 30yr has increased."

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