Traders are cautiously optimistic...>

US TSYS SUMMARY: Traders are cautiously optimistic on the 1pm ET US$15B 30Y bond

auction (new); reasons to eye good demand include thirst for long duration debt,

stripping needs for long debt, Ultra-long bonds on hold, good 10Y note auction

Wed, etc. Nomura noted that October was a "record" month of long end US Tsy

stripping activities recently. 

- The US 30Y bond also cheap on curve: 3/30Y is 2.70 bps steeper Thurs, 2/30Y is

2.90 bps steeper, and 5/30Y is 2.10 bps steeper on day. There also was some

pre-auction shorts and sales into the 30Y auction; and 30Y had been tight in

overnight repo too. 

- JPM analysts meanwhile noted that the $15B Oct 30Y auction (reopening) drew

12.2% foreign participation, up 8.3%, highest share since March. 

- HISTORY: The Oct. 2017 30Y reopening auction proved strong: it drew a 2.870%

rate, 2.750% coupon, a 2.53 bid/cover, 62.8% indirects, 10.6% directs, and 26.6%

dealers.