Preview $47B 2Y Note Auction

Tsy $47B 2Y note sale at the top of the hour (91282CER8), 2Y WI currently 2.525%, just over 20bp rich to last week's 2.7296% high print on Wed, and 6bp rich to last month's high yield stop.

• Tsy futures remain well bid at the moment, near highs post-data highs in the long end while 2s have pared gains slightly. April auction recap:
  • Decent 2Y sale, Tsy futures held firmer (curves steeper) after $47B 2Y note auction (91282CER8) stopped through: 2.585% high yield vs. 2.595% WI; 2.74x bid-to-cover surge vs. last moth's 2.46x.
    
    • Indirect take-up: climbed to 65.97% vs. 55.03% in March;
      
    • Primary dealer take-up: 21.44% vs. 19.43% last month;
      
    • Direct take-up: recedes to 12.60% vs. 25.55% last month
  • Timing: The 2Y note results will available shortly after the competitive auctions closes at 1300ET.