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Preview $42B 2Y Note Auction

US TSYS/SUPPLY

Tsy futures remain firmer but off early session highs ahead the $42B 2Y note auction (91282CHL8) at the top of the hour. WI is currently running around 4.687%, 38.7bp cheap vs. last month's stop:

  • May auction recap: Tsy futures pared losses after the $42B 2Y note auction (91282CHD6) traded through: 4.300% high yield vs. 4.315% WI; 2.90x bid-to-cover vs. 2.68x prior.
  • Indirect take-up climbed to 68.21% vs. 61.20% prior month, direct take-up fell back to 15.60% vs. 19.87% prior, primary dealer take-up 16.19% vs. 18.93%,
  • Timing: Results for the latest 2Y note sale will available shortly after the competitive auctions closes at 1300ET.

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