Treasuries hold near session highs,......>

US TSYS/7Y: Treasuries hold near session highs, while traders project the 1pm ET

$28B 7Y auction will draw a 2.208% to 2.210% rate. WI 7Y is at 2.213%. 

- Some traders believe there will be a moderate to good US and foreign

customers' bid at the auction. 

- Nomura analysts said that "with volatilities remaining tame amid all the

recent risk events, confidence for owning duration is still supported," they

said. And "a relatively quiet corporate issuance schedule into year-end should

support duration takedown on the belly." 

- BMO's Aaron Kohli noted that "foreign buying for the October auction dropped

to its lowest point since February. That being said, we are optimistic that due

to seasonal flows and the effect of month-end, we may see an uptick in foreign

demand." 

- HISTORY: The Oct. $28B 7Y auction drew a 2.280% rate, 2.250% coupon, 2.39

bid/cover and 63.5% indirects, while directs had 13.31% and 23.24% primary

dealers.