Treasury has 11:30 am ET Wed $13B....>

US TSYS/SUPPLY: Treasury has 11:30 am ET Wed $13B 2Y FRN Reopening auction, then

1pm $34B 5-year note auction,d finally Thu 1pm ET $28B 7Y auction. Traders

expected price concession to be needed amid Christmas/New Yr week with light

staffing. 

- 2Y FRN: Jefferies econ Tom Simons noted the $13B 2Y FRN reopening will raise

$13B in net new cash; it settles Friday Dec29, year-end. HISTORY: The $13B Nov.

2Y FRN reopening drew so-so bid: 0.035% (3.5 bps) high margin rate, 3.69

bid/cover, 49.6% indirect bidders, 6.27% directs, 44.14% primary dealers. 

- 5Y NOTE: Jefferies' Simons said 5Y auction pays down $1B; 5Y auction settles

Jan2 i.e., in new year. Traders noted 5Y tight in RP, suggests good shorts,

which cd aid sale.

- Cantor Fitz's Justin Lederer expects "buyers to materialize as we hover around

the highest ylds since 2011 (currently 2.24%, WI roll 1.5bps)" but wld "not be

surprised by a further small concession and/or small tail given the time of yr."

- 5Y HISTORY: Good $34B Nov. 5Y sale: 2.066% rate, 65.8% indirects, 11.4%

directs, leaving only a small 22.8% for primary dealers to mop up.