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Rallying On Better But Far From Stellar 5Y Auction

US TSYS/SUPPLY

Treasuries rally on a better but far from stellar 5Y auction.

  • The 5Y auction saw a 0.5bp trade through having tailed by 1.7bp in October.
  • Bid-to-cover of 2.46x, stepping up from last month’s weakest auction of the year with 2.36x, but still a little below the 5-auction average of 2.51x.
  • There’s a similar story for dealer take-up, at 16.85% vs 19.4% in Oct and the 5-auction average of 14.0%.
  • Indirects: 65.5 vs 66.6% 5-auction av, directs 17.6% vs 19.4% 5-auction av.
  • 5Y Tsy yields fall 2.5bps on the results to fresh lows for the day.

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