The Treasuries market's coupon.......>

US TSYS/SUPPLY: The Treasuries market's coupon auction supply begins today: will

be a $13B 2Y FRN reopening auction Wed at 11:30am ET (not 1pm ET), then will be

a Thu 1pm ET $14B 5Y TIPS reopening auction. SMRA's Alan Chernoff said this

issue will "raise all new cash when it settles Friday, Aug.t 25th."

- He adds "the 2-year FRN WI is bid with a discount margin of around 6.0 basis

points currently. The smallest discount margin for a 2-year FRN to date was the

4.1 basis point discount margin at the 2-year FRN reopening in September 2014.

Front-end and front-end equivalent issues have been met with mixed demand in

recent auctions, and bill auctions have been weak as well. The demand in the

2-year FRN auctions is often a reflection of bill demand, so we don't look for

particularly strong demand in today's auction."

- He adds the July 2Y FRN Auction was "a strong month for Indirect bidders.

Indirect bidders maintained a solid hit ratio on top of a large $12.702 billion

bid, much larger than the $8.222 billion average of the prior six months. The

Indirect hit ratio was also strong at 59.2% in July, up from the 46.9% six month

average."