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Preview $16B 20Y Bond Auction

US TSYS/SUPPLY

Tsy futures trading weaker, near late morning lows ahead today's $16B 20Y-Bond auction (912810TZ1) at 1300ET. WI is currently running around 4.557%, 13.4bp cheap to last month's high yield tail:

  • January recap: Tsy futures dipped (TYH3 111-13.5) after $13B 20Y bond auction re-open (912810TW8) tailed: drawing 4.423% high yield vs. 4.415% WI; 2.53x bid-to-cover vs. prior month's 2.55x.
  • Indirect take-up 62.16% vs. 66.4% last month; direct bidder take-up 20.51% vs. 20.71% prior; primary dealer take-up 17.33% vs. 12.89%.
  • Timing: today's 20Y note results will be available shortly after the competitive auctions closes at 1300ET.

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