Treasuries hold a mixed price range......>

US TSYS/7Y: Treasuries hold a mixed price range after overnight selloff on the

recent Fed Chr Yellen Dec rate hike hints, the latest tax reform/cuts progress,

and pre-auction shorts into 7Y auction. 

- And Nomura analysts said that "heading into the month-end 7yr auction, we are

slightly cautious on demand. With tax cut talk back on the table, expectations

seem to be running ahead of any concrete details, as the TIPS breakeven spread

widened modestly today. In addition, Yellen's comments on inflation in her

speech earlier in the week suggest the Fed may continue to hike, even if

inflation is running low. These might deter some interest in the 7yr auction." 

- But they also added that "on the flip side, valuation could appear attractive

for some buy-the-dip investors after the recent selloff. A persistently low vol

environment might also help demand. However, we think the risk for a tail at 1pm

is relatively high." 

- HISTORY: The Aug. 7Y auction drew strong buying: huge 68.80% indirects, 16.6%

directs leaving only puny 14.61% for dealers to digest.