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Preview $61B 5Y Note Auction

US TSYS/SUPPLY

Current 5Y WI running around 0.715% / 0.705% ahead today's $61B 5Y note (91282CCP4) auction. Compares to the June 23 auction high yield of 0.904% (small tail vs. 0.902% WI at the cut off). Note, 5Y supply has averaged a small 0.1bp tail over the last 5 auctions.

  • Last month's bid-to-cover of 2.36x just over 5M average of 2.35x.
  • Indirect take-up had declined to 57.62% from May's 64.35% (59.01% 5M avg); direct bidder take-up surged to 18.09% vs. 14.87% in May (15.48% 5M avg); primary dealer take-up of 24.29% was shy of the 5M average of 24.70%.

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