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The Tsys market drew more late..........>

US TSYS/10Y
US TSYS/10Y: The Tsys market drew more late pre-auction shorts and sales into
the $23B 10Y auction, which traders expected would draw a rate between 2.245% to
2.249%. Traders had expected good US demand and Asian (China, Japanese) bid too.
- One trader thought that the 10Y auction "goes okay" but it is challenging to
have a safe-haven rally in front of the auction, as occurred overnight
Tuesday/Wednesday amid N.Korea jitters. 
- But some felt the safe-haven mood might boost the auction demand, still. 
- The 10-year auction raises about $7.510 billion in net new cash after
accounting for the $15.490 billion maturing 10-year note. 
- Nomura's George Goncalves, Stanley Sun and Penglu Zhao said "renewed
geopolitical concerns could help support auction demand" and curve valuations
"still look attractive." 
- 10Y HISTORY: July $20B 10Y reopening: 2.325% yield, 2.45 bid/cover, 64.8%
indirects, 5.75% directs, 29.45% dealers.

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