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Preview $70B 5Y Note Auction

US TSYS/SUPPLY
  • Tsy futures hold moderate gains in 2s-10s ahead the $70B 5Y note auction (91282CLC3) at 1300ET. WI is currently running at 4.107%, 22.4bp rich to last month's stop.
  • June auction recap: Tsy futures gained slightly after the $70B 5Y note auction (91282CKG5) traded through with 4.331% high yield vs. 4.335% WI; 2.36x bid-to-cover -- in line with the 5-auction average.
  • Peripheral statistics were solid: dealers took down just 13.4%, the lowest since March (16.9% avg in previous 5 auctions), with indirects 68.9% (65.1% 5-auction avg) and directs 17.7% (18.0% 5-auction avg).
  • Timing: Results for the latest 5Y note sale will be available shortly after the competitive auction close at 1300ET.

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