Traders expected good US account.........>

US TSYS/3Y: Traders expected good US account demand at the 1pm ET $24B 3Y note

auction, with some expectation of slightly reduced foreign bid. Most thought the

3Y auction would get done at between 1.745% to 1.750% yield. - Some traders

pointed out the 3Y auction at $24B size is "not a big auction." 

- One trader noted that the 3Y auction is "reasonably priced, curve-wise, at the

top of a multi-year-yield high." He did not think that competition from US

dollar lending would "affect the overall auction in any major way." 

- Nomura analysts cited Powell and "attractive" vol adjusted carry/roll on front

end as 3Y pros, but "wide" FX Basis and "slowing" foreign central bank buying in

Tsy could hurt bid. 

- JPM analysts expected 3Y to go "without a problem" and noted Oct foreign

demand rose 5.8%-pts m/m in Oct to 20.6% from "weak" 14.8% Sept. - HISTORY: Oct

$24B 3Y auction drew a 1.657% yield, and 54.3% indirects, 7.1% directs and 38.6%

primary dealers; 2.83 Bid/cvr (2.7 Sep, 3.13 Aug)