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Treasuries built in a nice price and....>

US TSYS/30Y
US TSYS/30Y: Treasuries built in a nice price and curve concession into 1pm ET
US$12B 30y reopening. Mkt ebbed amid dealer-led short-setting/sales in 30s,
early futures sales and morning shorts/sales in 10Y, 30Y. Traders expect
moderate US demand at 30Y auction and light foreign interest. 
- Nomura N.American head of rate research George Goncalves said 30Y sale could
"demand some concession for a change, and lead to more micro- steepening in the
long end. Such curve moves would impact spreads into year-end, given spread
market directionality." 
- BMO analyst Aaron Kohli expects a "fair reception" for 30Y auction as "rich
levels collide with low liquidity." But "buyers could step up even at rich
levels, as liquidity is light in the market now, and only likely to worsen into
year-end," he added. 
- HISTORY: The $15B Nov. 30Y auction drew a 2.801% high yield, a 2.23%
bid/cover, a 2.75% coupon and 61.8% indirects, 6.42% directs leaving a 31.7% for
primary dealers to mop up.

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