Traders become more optimistic on 1pm...>

US TSYS/30Y: Traders become more optimistic on 1pm ET US$15B 30Y auction, think

will go between 2.805% to 2.815% rate. Some noted idea US Senate tax bill would

postpone 20% corporate tax rate to 2019 changed auction expectation. 

- The auction "will be a lot better than I thought just a little while ago,"

said one veteran trader. "Senator Cassidy changed the whole view" when said Sen.

tax bill won't have 20% corp. tax rate until Jan. 1, 2019, trader added. 

- A different trader said "they are doing steepeners" amid view corporate tax

cut might not arrive until 2019, he said. "The Fed won't have the stimulus from

the tax cuts, so could they slow down the rate hikes?" 

- Traders cited demand causes: thirst for long duration debt, stripping needs

for long debt, Ultra-long bonds on hold, good 10Y auction Wed; 30Y cheap on

curve. 

- One trader said auction will come "on the screws" as was "focus on the recent

massive curve flattening, but there was steepening" today. HISTORY: Strong Oct

30Y reopening: 2.870% rate, 2.750% cpn, 2.53 cvr, 62.8% indirect, 10.6% direct,

26.6% dealers.