Traders expect fairly good demand at.....>

US TSYS/5Y: Traders expect fairly good demand at the 1pm ET US$34B 5Y note

auction from US and foreign accounts. "I think it will be okay," said one

veteran trader at a primary dealer. "The market has been nuts today. We have a

good price concession. Given the amount of real money buying in the past couple

of days, there should be sponsorship for it. And foreign buying should be

there." 

- But he also cautioned however, "the big question is, 'how does it trade

afterward?' Does it go okay and then slide afterward? I tend to think it goes

okay, and then we lead afterward." 

- A different trader predicted the auction will come "on the screws" with "fine

demand" as "it has cheapened up a lot." He added that generally the Tsys "market

is in a little bit of a twist" amid rate locks, tax jitters and Fed Chr Yellen

Dec. rate hike hints.