Tsys rise. SMRA's John Canavan said.....>

US TSYS/30Y: Tsys rise. SMRA's John Canavan said today's 30Y auction drew "very

strong indirects", went "quite well overall" and "even better relative to other

Refunding auctions. The 2.818% stopout rate was through the 2.820% 1pm bid side,

and the 2.32 bid/cover was the best for a Refunding 30-year since Nov. 2015."

- He adds "buyside takedown was solid as well led by the best Indirect takedown

since July 2016. The strength of the Indirect bid is typically related to the

strength of investment fund demand, but given the outsized strength this month,

we expect we will also see some foreign Indirect buying when the bidder

allotment figures" come out in  later August. 

- He added $11.594B indirect bid today was "largest for any 30-yr auction since

the August 2010 Refunding. Combined with a near-avg hit ratio, Indirect bidders

took down 66.8% of the auction today compared to an avg takedown of 62.2% for

all 30yr bd auctions over the prior yr."

- He said "strong indirect bid" appeared to "hold down the direct bidder hit

ratio, leaving them with 5.4%," "smallest takedown since May," not "out of line"

with "norm."