SMRA's John Canavan said the US......>

US TSYS/SUPPLY: SMRA's John Canavan said the US Treasury "will come to market"

at 1pm ET "with a $20B 52-week bill auction," at same time "as the 4-week bill

auction. The 52-week bill auction sizes have been steady at $20B since March

2016, so today's auction will essentially just roll over the maturing issue when

it settles on Thursday. However, combined with this week's 4-wk, 3-month and

6-month bill auctions, the $133B in Tsy bill issuance this wk will raise

approximately $6B after accounting for maturing issues."

- He adds the 52-week bill yield "steadied from mid-June through early September

between roughly 1.19% and 1.24%, but that changed through the September FOMC

meeting, as strong data and a more hawkish Fed have combined to cause the yield

to jump to 1.31% in the wake of last Friday's employment report. That's the

highest it's been since Oct.29, 2008."

- He adds "the cash flows for the 1-yr bill aren't a problem for the auction,

but concerns about a more aggressive Fed over the course of the next yr should

result in another tailing auction, along with a smaller bid/cover relative to

recent auctions."