Tsys are relatively quiet, lower,........>

US TSYS/7Y: Tsys are relatively quiet, lower, 5/30Y flatter, into the 1pm ET

$28B 7Y auction, which is expected to get done at about 2.360%. Some expected

month-end buying could aid the 7Y auction as Bloomberg/Barclays index was

expected to extend 0.07 yrs). "It will be fine," said one trader.

- Cantor Fitz analyst Justin Lederer expects "there will be buyers aided by

month-end/quarter-end. We, however, much like" Wed 5Y auction "would not be

surprised by a tail given the time of year." 

- He adds "this 7 year is setting up to be underwritten at the highest auction

stop since December (2016) (2.385%)." 

- Jefferies economists Ward McCarthy and Tom Simons noted 7-year auction "is the

same size as last month" and "will pay down $2.5 bln." They warn Nov 7Y auction

"came with the widest tail since February 2016" and given this week's "tepid

demand" at 2Y, 5Y auctions, "a repeat performance may be in the cards today." 

- HISTORY: The US$28B Nov. 7Y auction drew a 2.230% rate, 2.36 bid/cover, 58.6%

indirects, 13.7% directs, thus 26.77 left for primary dealers to mop up.