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Preview $42B 2Y Note Auction

US TSYS/SUPPLY
Tsy futures holding weaker, yield curves steeper ahead the $42B 2Y note auction (91282CGD7) at the top of the hour (including $34B 52W bills). WI is currently running around 4.365%, 14bp rich to last month's stop.
  • November auction recap: Tsy futures held gains, little react after $42B 2Y note auction (91282CFX4) stopped through: 4.505% high yield vs. 4.512% WI; 2.64x bid-to-cover vs. 2.59x prior.
  • Indirect take-up climbed to 56.98% vs. 50.51% prio month, primary dealer take-up 22.39% vs. 25.28%, direct take-up 20.62% vs. 24.21%.
  • Timing: The 2Y note results will available shortly after the competitive auctions closes at 1300ET.

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