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$40B 3Y Auction – Large Stop Through And B/C

US TSYS/SUPPLY
  • 3.695% high yield Vs 3.723% WI for 2.8bp trade through.
  • Bid-to-cover 2.93x (vs 2.59 prior, 2.61x 5 auction av)
  • Indirect take 73.35% (vs 61.3% prior, 62.82% 5 auction av), direct bidder 13.66% (vs 21.0% prior, 19.27% av) and primary dealer 12.99% (vs 17.69% prior, 17.91% av)
  • 3YY see a further trimming of prior sell-off, now just +1.7bp on the day again at 3.735% from +3.1bp just prior to the auction after partially unwinding a sell-off in the lead up that saw a brief high of 3.766%.

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