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Treasuries have mild FX-tied bid.....>

US TSYS/SUPPLY
US TSYS/SUPPLY: Treasuries have mild FX-tied bid as the US$ weakens a bit vs.
the Japanese yen in quiet action. That could aid Japanese demand potentially at
the 11:30am ET US$26B 2Y note auction. Traders felt 2Y note had cheapened enough
in price to pull in US and foreign demand 2-year note auction. 
- PROS: Tightness in 2Y, 5Y RP; overnight sales in 2Y, 5Y notes could have
auction-tied sales to prepare to buy new issueds.
- CONS: Thin summer trade, UK bank holiday could trim demand. Doubled-up supply
of 2Y, 5Y auctions in one day a bit difficult to digest, but these are
relatively short maturities so not a big problems.

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