Free Trial

Traders are cautiously optimistic on.....>

US TSYS/7Y
US TSYS/7Y: Traders are cautiously optimistic on the 1pm ET $28B 7Y note
auction, which occurs after today's overnight risk-off rally on N.Korea missile
firing, but also amid profit-taking and short-setting since then to set up for
auction. Traders expected US and foreign (Asia, Japan, China) buying at 7Y
auction. Traders said Monday's strong $34B 5Y note auction provides a better
backdrop for the 7Y note auction, which followed a so-so 2Y auction. 
- Nomura N.American head of rate research George Goncalves and analysts Stanley
Sun and Penglu Zhao: The "long Labor Day weekend may bring forward month-end
flows and boost 7yr demand." They added some "dovishness" from Jackson Hole Fed
conference "may help demand." 
- Traders said midmorning price ebb to get 7Y auction price concession did not
mean there would not be 7Y demand, though there may be a slight tail.
"Everbody's got to have them," said one trader. "Everybody will participate," he
said, eyeing US, Asian and European buyers. 
- HISTORY: July $28B 7Y auction drew 2.126% high yield, 2.54 cover, strong 67.7%
indirects, 11.64% directs leaving only 20.62% for primary dealers to mop up.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
}); window.REBELMOUSE_ACTIVE_TASKS_QUEUE.push(function(){ window.dataLayer.push({ 'event' : 'logedout', 'loggedOut' : 'loggedOut' }); });