SocGen analyst Shakeeb Hulikatti.....>

US TSYS/SUPPLY: SocGen analyst Shakeeb Hulikatti said Tsy Wed will auction $24bn

3Y notes at 11:30am ET and $20bn in 10y note reopening at 1pm ET, then $12bn in

30y reopening Thu, the "final reopening of the 10y note and the 30y bond." 

- He adds new 3y auction and 10y reopening "will take place after the speech by

the Chicago Fed's Evans at 7:15am and before the release at 2pm of the FOMC

minutes of the Sept. 19-20 meeting." 

- He said 3y auction likely needs "concession to be underwritten smoothly" as

doesn't "seem to have set up from a relative-value perspective, with the current

3s trading rich on asset swap vs the old 3s, and on the curve versus 2s and 5s.

Other negatives for the auction include the cut in dealers' short positioning in

the sector and the crowded calendar, with the 10y auction at 1pm ET and the FOMC

minutes at 2pm ET on the same day, followed" on Friday by CPI data, "a risk

event. The sector has cheapened since the last auction, with the benchmark 3y

yld now trading well above the auction stops since March, which is a positive

for the auction. The 3y benchmark security is trading negative on repo,

indicating a short base, which is positive for the auction on the margin."