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

US TSYS/7Y
US TSYS/7Y: Nomura N.American head of rate research George Goncalves and
analysts Stanley Sun and Penglu Zhao said on today's 1pm ET US$28B 7Y note
auction that the "long Labor Day weekend may bring forward month-end flows and
boost 7yr demand." They also added that "some of the dovishness that came out of
last week" and the Jackson Hole conference "may help the demand, especially
given the persistent, low interest rate vol." 
- But the Nomura analysts also warned that "rich valuations on the curve and
slope are close to extreme levels. Specs' relative long positioning in TY is
still elevated," which could "reduce some risk appetite from the fast money
space."

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