Treasuries traders expect moderate US...>

US TSYS/10Y: Treasuries traders expect moderate US and foreign demand at the 1pm

ET US$20B 10Y reopening auction, and noted interest in the issue. 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. 

- Japanese accounts and China, European accounts may have interest though

Japanese accounts would prefer a 2.40% rate, vs. 2.344% current WI rate. 

- 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.