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Preview 30Y Bond Auction Re-Open

US TSYS/SUPPLY

Tsy futures holding near the top end of the session range ahead the $22B 30Y Bond auction re-open (912810TB4). WI currently running around 1.865%, appr 7.5bp richer to last month's high yield. November recap:

  • Tsy futures extended sell-off after weak $25B 30Y Bond auction (912810TB4) tailed:1.940% high yield vs. 1.889% WI; 2.20x bid-to-cover lowest since July and well below five auction avg: 2.29x
  • New low for the year: Indirect take-up fell to 59.00% vs. 70.55% in October; direct bidder take-up also fell to new year low of 15.78% vs. 17.17% prior while primary dealer take-up bounced to new year high of 25.23% vs.18.25% 5M average.

Timing: The 30Y Bond re-open results will available shortly after the competitive auctions closes at 1300ET. The next 30Y auction is tentatively scheduled for January 13.

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