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Preview Tsy 3Y Note Auction

US TSYS/SUPPLY

Rush of Treasury issuance next two days due to Thursday settle, maintains 2 day gap between last auction and settle: Tsy coupon sale $41B 3Y-Note (91282CFK2) in addition to $42B 26W bills coming up at 1130ET; $32B 10Y notes re-open (91282CFF3) and $54B 13W bills at 1300ET (30Y Bond follows tomorrow).

  • The 3Y WI is currently running around 3.560%, 35.8bp cheaper than last month's high yield. August auction recap: Treasury futures held modestly weaker levels - little react after $42B 3Y note sale's (91282CFE6) modest stop-through: 3.202% high yield vs. 3.205% WI; 2.50x bid-to-cover vs. 2.43x last month.
    • Indirect take-up climbs to 63.08% vs. 60.37% prior; direct bidder take-up at 17.28 vs. last month's 19.35%; primary dealer take-up 19.64% vs. 20.28%.
  • Timing: The 3Y note sale results will available shortly after the competitive auctions closes at 1300ET.

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