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Preview 3Y Note Auction

US TSYS/SUPPLY
  • Tsy futures remain moderately weaker ahead of the $58B 3Y note auction (91282CKV2) at 1300ET. WI is currently at 4.639%, 3.4bp cheap to last month's high yield stop.
  • May auction recap: Treasury futures held gains (TYM4 109-06, +9.5) after $58B 3Y note auction (91282CKR1) traded 2bp through: 4.605% high yield vs. 4.607% WI; 2.63x bid-to-cover (Jan high) vs. 2.50x prior month.
  • Indirect take-up climbed to highest since March at 65.52% vs. 60.26% prior; direct bidder take-up slipped to 19.60% vs. 20.43% prior; primary dealer take-up fell to 14.87% vs. 19.13% prior.
  • Timing today's 3Y note sale: results will available shortly after the competitive auctions closes at 1300ET.

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