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Tsys see more steepening, buying going...>

US TSYS/7Y
US TSYS/7Y: Tsys see more steepening, buying going on mildly in 2Y, 3Y, 5Y cash
notes while longer issues still weaker. Nomura N.American head of rate research
George Goncalves and analysts Stanley Sun and Penglu Zhao noted on today's $28B
7Y auction that the "recent sharp selloff might help attract buy-the-dip
investors. A persistent low vol environment may continue to support demand for
belly." 
- But they also warned however that "with expectations for tax cuts coming back
on the table, demand for belly may face headwinds. Demand may also be weakened
given Chair Yellen's hawkish speech earlier in the week and less index extension
needs this month."

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