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Preview 2Y Note Auction

US TSYS/SUPPLY
  • Tsy futures hold moderately higher, near midmorning highs ahead of the $69B 2Y note auction (91282CKK6) at 1300ET. WI is currently running at 4.919%, 32.4bp cheap to last month's auction.
  • March recap: Tsy futures traded near session lows after the $66B 2Y note auction (91282CKH3) drew 4.595% high yield vs. 4.592% WI; 2.62x bid-to-cover vs. 2.49x prior.
  • Indirect take-up at 65.76% vs. 65.16% prior, directs took 20.88% vs. 20.11% last month, primary dealer take-up 13.36% vs. 14.73% prior.
  • Timing: Results for the latest 2Y note sale will be available shortly after the competitive auction close at 1300ET.

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