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Preview $19B 20Y Bond Auction

US TSYS/SUPPLY

Tsy futures holding modest gains, near middle of broad session range ahead the $19B 20Y-Note auction (912810TF5) at the top of the hour. WI is currently running around 2.397%, appr 18.7bp cheap to last month's high yield.

  • January recap: last month's $20B 20Y auction re-open stopped-through w/ 2.210% high yield vs. 2.220% WI; year high 2.48x bid-to-cover better than last month's 2.59x.
    • Indirect take-up climbed to year+ high of 66.22% vs. last year's high of 64.83% in Oct and Dec; direct bidder take-up recedes to 17.03% vs. Dec'21 year high of 20.83% while primary dealer take-up bounced from Dec'21 1Y low of 14.34% to 16.75%.

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

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