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BoJ Decision, Japan's Retail Sales Eyed


(Z1) Downside Pressure Resumes


Early Vol. Observed In YM

/REFUNDING: TD's Priya Misra,........>

US TSYS/SUPPLY: /REFUNDING: TD's Priya Misra, Gennadiy Goldberg and Cheng Chen
previewed next Wednesday's 8:30 am ET US Tsy November Refunding announcement and
related matters, and eyed a "supply surge." 
- They expected Treasury "to fund an estimated $250bn of Fed portfolio runoff in
2018 by increasing supply across the curve, but to concentrate issue size
increases in the sub-5yr sector. We expect FRN issue sizes to increase, but look
for TIPS to remain unchanged." 
- They also looked for "a $1bn increase in the 3yr auction size at November
refunding meeting, with no increases to the 10yr and 30yr auction sizes just
yet. While we see a risk of $1bn increases to 10yr and 30yr sizes, we expect any
such increase to occur later as sub-5yr auction sizes are increased first."