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

US TSYS/SUPPLY
US TSYS/SUPPLY: Nomura N. American head of rate research George Goncalves and
analysts Stanley Sun and Penglu Zhao said on 11:30am ET US$24B 3Y auction that
"asset managers' positioning might have suggested some overselling on the front
end. Subdued volatilities may still help bring investors for this carry/roll
attractive 3yr sector."
- But they warned too "foreign risk appetite on the front end remained weak in
recent 2yr and 3yr auctions. Some brightness in wage inflation data may not bode
well for front-end takedown."

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