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US Treasuries prices held a lower...>

US TSYS SUMMARY
US TSYS SUMMARY: US Treasuries prices held a lower range in afternoon trading as
market digesting heavy corporate bond supply and a reasonably good $28B 7Y note
auction. AT&T is selling $22.5B seven-part debt deal, has launched. 
- Tsy 7Y auction: Tiny tail to 2.126% rate, but strong 67.74% indirects, good
11.54% directs so small 20.62% for dealers to mop up. 
- Tsys bounced off earlier session lows around 12:58pm ET amid large 10Y Tsy
futures block: apparent buy done for 10k TYU7 at 125-24+, as was trading
125-24/24+ at post time. 
- Tsys earlier had pre-auction short set/sales into 7Y auction and some apparent
rate-lock hedging amid busy high-grade corporate bond issuance: AT&T debt deal
cited above; BNZ $650M 5.25Y, Amex two-part debt deal and BNZ 5.25Y debt deal. 
- And there was buying of about 10,000 10Y Tsy futures done around 125-25/255
near 9:50am ET. Followed weaker NY Tsys opening after overnight 2Y trading
flows, morning pre-auction shorts/sales into 7Y auction and cash sales in 2Y Tsy
to 10Y Tsys. 
- RP: 5Y traded tight, 2Y demand waned though; others quiet.

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