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Preview $48B 2Y Note Auction

US TSYS/SUPPLY

Tsy futures trade mildly weaker, off overnight lows ahead the $48B 2Y note auction (91282CJB8) at the top of the hour. WI is currently running at 5.087%, 6.3bp cheap vs. last month's stop:

  • August auction recap: Little reaction from Tsy futures after the $45B 2Y note auction (91282CHV6) traded through: 5.024% high yield vs. 5.030% WI; 2.94x bid-to-cover vs. 2.86x prior.
  • Indirect take-up climbed to 65.01% vs. 65.45% prior month, direct take-up 20.01% vs. 20.77% prior, primary dealer take-up 14.89% vs. 13.79%,
  • Timing: Results for the latest 2Y note sale will be available shortly after the competitive auction close at 1300ET.

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