The U.S. Treasury still has a lot....>

US TSYS/SUPPLY: The U.S. Treasury still has a lot of coupon auctions this week:

Treasury will next sell an 11:30 a.m. ET Wed $13B 2-year Floating Rate Note

Reopening auction, then 1pm $34B 5-year note auction 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 with light trading desk staffing;

but they did not anticipate any terrible disastrous auctions.

- 2Y FRN: Jefferies economist Tom Simons noted the $13B 2Y FRN reopening will

raise $13B in net new cash; it settles Friday, Dec. 29, the year-end date. 

- HISTORY: The $13B Nov. 2Y FRN reopening drew so-so bid: 0.035% (3.5 bps) high

margin rate, 3.69 bid/cover, 49.6% indirect bidders, 6.27% directs, 44.14%

primary dealers.

- 5Y NOTE: Jefferies' Tom Simons added $34B 5Y auction will pay down $1.0B; the

5-year note auction will settle on Jan. 2nd, i.e., in the new year. 

- 5Y HISTORY: The $34B Nov. 5Y sale drew good bid: 2.066% rate, 65.8% indirects,

11.4% directs, leaving only a small 22.8% for primary dealers to mop up.