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Preview $42B 2Y Note Auction

US TSYS/SUPPLY

Tsy futures holding firmer, yield curves flatter ahead first of two note auctions today: $42B 2Y note auction (91282CFX4) at the bottom of the hour (including $45B 26W bills). WI is currently running around 4.510%, 5bp cheap to last month's tail.

  • October auction recap: Tsy futures held gains, little react after $42B 2Y note auction (91282CFQ9) tailed: 4.460% high yield vs. 4.447% WI; 2.59x bid-to-cover vs. 2.51x prior.
    • Indirect take-up receded to 50.51% vs. 52.95% prior, primary dealer take-up 25.28% vs. 24.84%, direct take-up 24.21% vs. 22.20%.
  • Timing: The 2Y note results will available shortly after the competitive auctions closes at 1130ET.

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