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Preview Tsy 3Y Note Auction

US TSYS/SUPPLY

Tsy futures holding firmer, near highs while yield curves bend flatter ahead today's $40B 3Y note auction (91282CFW6) at the top of the hour. WI is currently running around 4.607%, 28.9bp cheap to last month's tail.

  • October auction recap: Treasury futures pared gains slightly after $40B 3Y note auction (91282CFP1) tailed: 4.318% high yield vs. 4.310% WI; 2.57x bid-to-cover vs. 2.49x prior.
  • Indirect take-up slipped to 53.40% vs. 54.55% prior; direct bidder take-up at 19.55 vs. 21.85% prior; primary dealer take-up 27.05% vs. 23.60%.
  • Timing: The 3Y note sale results will available shortly after the competitive auctions closes at 1300ET.

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