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Preview $45B 5Y Note Auction

US TSYS/SUPPLY

US Tsy $45B 5Y-Note auction (91282CFH9) at the top of the hour, WI currently running around 3.212%, 35.2bp cheaper to last month's stop.

  • July auction review: Tsys dipped slightly after solid $46B 5Y note auction (91282CET4) modest stop through w/ 2.860% high yield vs. 2.870% WI; 2.46x bid-to-cover vs. 2.28x prior
    • Indirect take-up bounced to highest since February: 66.37% vs. prior month’s drop to 56.47% and 5 auction avg 62.3%, whilst primary dealer and direct takes both 16.81% are lowest since April and Jan respectively.
  • Timing: The 5Y note results will available shortly after the competitive auctions closes at 1300ET.

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