Tsys have has a good price...........>

US TSYS/SUPPLY: Tsys have has a good price concession after overnight selloff

and NY further weakness, which should aid demand at 11:30am ET $13B 2Y FRN

reopening and then the $34B 5Y note auction at 1pm ET. 

- 2Y FRN REOPENING: This should draw mild US and foreign demand. - HISTORY: The

$13B Aug. 2Y FRN opening had 6-bps discount margin, and 50.05% indirects, 0.37%

directs, 49.6% dealers, 3.09 bid/cover. 

- 5Y AUCTION: Traders eyed potential US and foreign bid, have been good 5Y

shorts for weeks, tight in O/N Repo too. Some eyed potential month-end bid;

Bloomberg US Tsys index is at 0.07 yrs into month-end. 

- JP Morgan analysts said 5Y "yields have risen 10bp since the last auction, but

the flatness of the curve at the front end leads us to think that tomorrow's

auction should require a modest concession to underwrite. JPM analysts noted the

August 5-year auction "cleared at 1.742%, 0.5bp through pre-auction levels, as

end-user demand rose 6.6%-pts to 82.5%, a record for the series. This was

largely driven by foreign participation, which rose to its highest share since

June 2016."