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Preview $58B 5Y Note Auction

US TSYS/SUPPLY

US Tsy $58B 5Y-Note auction (91282CJR3) at the top of the hour is currently 3.837%, 58.3bp rich vs. last month's high yield stop:

  • November auction review: Treasuries rallied (5Y Tsy yields fell 2.5bps) on better - but far from stellar 5Y auction drew 4.425% high yield vs. 4.427% WI.
  • Bid-to-cover of 2.46x, stepped up from October's weakest auction of the year at 2.36x, but still a little below the 5-auction average of 2.51x.
  • Dealer take-up receded to 16.85% vs 19.4% in Oct and the 5-auction average of 14.0%. Indirect take-up: 65.5 vs 66.6% 5-auction avg, directs 17.6% vs 19.4% 5-auction avg
  • Timing: Results for the latest 5Y note sale will available shortly after the competitive auctions closes at 1300ET.

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