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Preview 3Y Note Auction: Near 60Bp Rich to July's Stop

US TSYS/SUPPLY
  • Tsy futures are moderately weaker/off lows ahead of the $58B 3Y note auction (91282CLG4) at 1300ET. WI is currently at 3.807%, 59.2bp rich to last month's stop.
  • July auction recap: Treasury futures pare losses slightly (TYU4 110-12, -7) after $58B 3Y note auction (91282CKZ3) stops .6bp through: 4.399% high yield vs. 4.405% WI; 2.67x bid-to-cover vs. 2.43x prior.
  • Indirect take-up slipped to 63.97% vs. 64.14% prior; direct bidder take-up rebounded to 21.26% vs. 15.9% prior; primary dealer take-up fell to 14.78% vs. 19.96% prior.
  • Timing today's 3Y note sale: results will be available shortly after the competitive auctions closes at 1300ET.

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