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Preview 2Y Note Auction

US TSYS/SUPPLY
  • Tsy futures trading near moderate session highs ahead of the $69B 2Y note auction (91282CLB5) at 1300ET. WI is currently running at 4.452%, 25.4bp cheap to last month's in-line sale.
  • June recap: Tsy futures inched off lows after the $69B 2Y note auction (91282CKY6) drew 4.706% high yield vs. 4.705% WI; 2.75x bid-to-cover vs. 2.41x prior.
  • Indirect take-up at 65.58.90% vs. 57.90% prior, directs took 20.93% vs. 25.5% last month, primary dealer take-up 13.48% vs. 16.6% prior.
  • Timing: Results for the latest 2Y note sale will be available shortly after the competitive auction close at 1300ET.

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