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Preview $42B 2Y Note Auction

US TSYS/SUPPLY

Tsy futures holding broadly higher by midday, yield curves flatter ahead today's $42B 2Y note auction (91282CFQ9) at the top of the hour. WI is currently running around 4.437%, 17.7bp cheap to last month's tail.

  • September auction recap: Tsy futures remained broadly weaker/near lows after $43B 2Y note auction (91282CFN6) tailed: 4.290% high yield vs. 4.275% WI; 2.51x bid-to-cover vs. 2.49x prior.
    • Indirect take-up receded to 52.95% vs. 59.73% prior month, primary dealer take-up climbed to 24.84% vs. 17.31%, direct take-up 22.20% vs. 22.95%.
  • Timing: The 2Y note results will available shortly after the competitive auctions closes at 1300ET.

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