SocGen analyst Shakeeb Hulikatti said....>

US TSYS/2Y: SocGen analyst Shakeeb Hulikatti said US Treasury is scheduled to

auction $26bn in 2y notes auction on Tues Oct. 24, $34bn in 5y notes on Oct. 25

and $28bn in 7y notes on Oct. 26. "We are slightly positive on the upcoming 2y

note auction, though it will likely need a concession going in," he said. 

- He adds that "the 2y when-issued (WI) is about 2bp cheaper than last month's

auction yield and higher than the stopout rate from any 2y note auction since

2008, which is positive for the auction. In addition, the current 2y note is

trading cheap on the curve, which is a positive for the auction, as is the fact

that speculators (non-commercial investors) hold a record short in the sector,

which will likely benefit the auction from short covering."