Traders have mixed views on today's......>

US TSYS/2Y: Traders have mixed views on today's 1pm ET US$26B 2Y note auction,

which they expect will get done at 1.923%. Some project the auction needs more

price concession, but others feel it will get done fairly smoothly as 2-year

notes normally do not struggle too much. 

- "It will be on the screws," said one trader. "The two-year note auctions

usually do not have any big surprises." 

- But others felt that in a rising rate environment, the price concession

becomes more important, esp. for the front end. 

- Cantor analyst Justin Lederer said that "we believe the 2 year should find

buyers near the current yield levels given it is trading at multi-year highs

(this 2 year will be underwritten at the highest yield since September 2008)."

- "We do, however, believe there is a chance of a tail given both the time of

year and prospects of higher short term rates in 2018 (attributed to expected

Fed tightenings and increased Treasury issuance)," he said. 

- HISTORY: Nov. 2-year auction: 1.765% high yield, a 2.73 bid/cover and 41.85%

indirect bids, 16.99% directs, leaving fairly chunky 41.2% for dealers.