US traders are probably more thinking....>

US TSYS/2Y: US traders are probably more thinking about the supply of

Thanksgiving turkey than US Treasuries, but  it's worth looking at 11am ET

2/5/7Y auction supply announcement for next week. TD analysts Cheng Chen and

Gennadiy Goldberg expect that Treasury will likely have auction sizes "remain

unchanged at $26bn in 2s, $34bn in 5s and $28bn in 7s. Treasury announced at the

Nov. 1 refunding that auction sizes will remain unchanged for the coming

quarter, but look to begin increasing auction sizes in February."

- They add Treasury "will sell 2s and 5s on Monday, and 7s on Tuesday. This will

allow one day between the 7yr auction and settlement on Thursday. With $83.3bn

maturing at the month-end settlement, the auction will raise $4.7bn in new cash.

There will also be $7.9bn in SOMA holdings maturing in the second half of

November, with the Fed allowing only $2.5bn to run off the balance sheet. This

would lead the Fed to add on $5.4bn ($1.6bn to 2s, $2.1bn to 5s and $1.7bn to

7s)."