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Preview 2Y Note Auction

US TSYS/SUPPLY
  • Tsy futures hold moderately weaker, near session lows ahead the $66B 2Y note auction (91282CKH3) at 1300ET. WI is currently running at 4.597%, 9.4bp rich to last month's auction.
  • February recap: Tsy futures held lows (TYH4 -6 at 109-22) after the $63B 2Y note auction (91282CKG5) tailed: drawing high yield of 4.691% vs. 4.687% WI; 2.49x bid-to-cover vs. 2.57x prior.
  • Indirect take-up at 65.16% vs. 65.30% prior (July'23 high, 5-auction average of 62.3%), directs took 20.11% vs. 19.87% last month (20.9% 5-auction average), primary dealer take-up 14.73% vs. 14.83% prior.
  • Timing: Results for the latest 2Y note sale will be available shortly after the competitive auction close at 1300ET.

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