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Preview Tsy 3Y Note Auction

US TSYS/SUPPLY

US Tsy coupon sales kicks off week with $50B 3Y-Note (91282CDZ1) at the top of the hour. WI is currently running around 1.592%, 35.5bp cheaper to last month's high yield. January auction recap:

  • Treasury futures gained slightly but held an inside range after $52B 3Y note auction (91282CDS7) drew small stop: 1.237% high yield vs. 1.239% WI; 2.47x bid-to-cover vs. 2.43x in Dec.
    • Indirect take-up climbed to 61.65% vs. last month's year high of 52.17%, while direct bidder take-up falls off 1+ year highs last couple auctions to 15.51% (18.01% Dec). Primary dealer take-up recedes to 22.84% vs. 29.81% in Dec, well under the 5M average of 28.06%

Timing: The 3Y note sale results will available shortly after the competitive auctions closes at 1300ET.

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