Traders still expect moderate US and....>

US TSYS/10Y: Traders still expect moderate US and foreign demand at 1pm ET

US$20B 10Y reopening; they also expect a 2.350% auction rate. "Tens have a

tendency to "go with" the market," said one trader. "That German Bund futures

dragged down Tsys a bit in price reluctantly," referring to a 11:22am ET sale of

8,085 RXY7 10Y Bund futures. 

- Japanese accounts and China, European accounts may have some interest in 10Y

auction though Japanese accounts would prefer a 2.40% rate vs. 2.349% WI rate.

Tsys today saw pre-auction short-setting into earlier 3Y auction and 1pm 10Y

reopening and rate-locks amid busy high-grade US$ corporate bond issuance. 

- SocGen's Shakeeb Hulikatti said 3y, 10Y "take place" before today's 2pm ET

FOMC mins; plus auctions occur before Friday CPI, a "risk event. 

- JPM's Jay Barry, Jason Hunter: Since Sep auctn, 10Y yields rose "16bp" and

"are trading near their highest levels in 6 months." 

- HISTORY: Sept. US$24B 3Y auction: 1.433% yield, 2.70 cover, 10.4% directs,

46.2% indirects, high 43.4% dealers.