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2Y Auction ​Review: Weak

US TSYS/SUPPLY

Not much of a react to the weak 2Y sale, Tsy futures remain mixed, short end weaker after $56B 2Y note auction (91282CDR9) tailed: 0.769% high yield vs. 0.762% WI; 2.55x bid-to-cover outpaces Nov's 2.36x and well over five auction avg: 2.49x.

  • Indirect take-up: rebounds to year high of 61.39% vs. 45.62% in November;
  • Primary dealer take-up: recedes to 24.22% vs. 37.21%;
  • Direct take-up: lowest since Feb at 14.39% vs. 17.17% last month.
  • The next 10Y auction is tentatively scheduled for January 24.

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