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Preview Tsy 3Y Note Auction

US TSYS/SUPPLY

Tsy futures trading mixed, short end weaker after support for Tsys evaporated an hour ago along w/ EGBs (desks citing strong bounce in crude: WTI currently +2.75 at 73.77) ahead the $40B 3Y note auction (91282CGA3) coming up at 1130ET. WI is currently running around 4.080%, 52.5bp cheap to last month's tail.

    • November auction recap: Treasury futures held gains after $40B 3Y note auction (91282CFW6) stopped through: 4.605% high yield vs. 4.615% WI; 2.57x bid-to-cover steady to last month.
    • Indirect take-up climbed to 62.18% vs. 53.40% prior; direct bidder take-up at 17.04% vs. 19.55% prior; primary dealer take-up 20.78% vs. 27.05%.
  • Timing: The 3Y note sale results will available shortly after the competitive auctions closes at 1130ET.

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