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Preview $12B 20Y Bond Auction

US TSYS/SUPPLY

Tsy futures trading ahead the $15B 20Y-Bond auction (912810TQ1) at the top of the hour. WI is currently running around 3.992%, appr 31.4bp cheap to last month's high yield stop.

  • January recap: Tsy futures bid accelerated after strong $12B 20Y bond auction re-open (912810TM0) traded through: 3.678% high yield vs. 3.702% WI; 2.83x bid-to-cover vs. prior month's 2.68x.
  • Indirect take-up 76.25% vs. 72.30% prior month; direct bidder take-up 15.61% vs. 19.01% prior; primary dealer take-up 8.14% vs. 8.69%.
  • Timing: The 20Y note results will be available shortly after the competitive auctions closes at 1300ET.

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