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Preview $15B 20Y Bond Auction

US TSYS/SUPPLY

Long end Tsy futures trade strong, near session highs ahead the $15B 20Y-Bond auction (912810TM0) at the top of the hour. WI is currently running around 4.090%, appr 30.5bp rich to last month's high yield tail.

  • October recap: Tsy futures slipped back to session lows after $12B 20Y bond auction re-open (912810TK4) tailed: 4.395% high yield vs. 4.375% WI; 2.5x bid-to-cover vs. prior month's 2.65x.
  • Indirect take-up fell to 63.70% vs. 75.32% prior month; direct bidder take-up 19.86% vs. 16.62% prior; primary dealer take-up 16.43% vs. 8.06%.

Timing: The 20Y note results will be available shortly after the competitive auctions closes at 1300ET.

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