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Some end users sold the Tsys front...>

US TSYS/SUPPLY
US TSYS/SUPPLY: Some end users sold the Tsys front end Tuesday, perhaps to buy
the 5Y or 7Y note auctions on Wednesday or Thursday, respectively. The U.S.
Treasury will next sell a $13B 2-year Floating Rate Note Reopening auction at
11:30 am ET Wednesday then a 1pm $34B 5-year note auction following at 1pm ET
that same day. 
- Then Treasury sells a $28 billion 7-year note auction at 1:00 p.m. ET
Thursday. 
- Traders expected price concessions to be needed on a quiet week bookended by
Christmas Monday and then New Year's holiday later in the week with light
trading participation, but did not anticipate any terrible disastrous auctions.
- In other action, MBS weakened Tuesday.

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