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Preview Tsy 3Y Note Auction

US TSYS/SUPPLY

Tsy futures trading weaker but off lows with the short end outperforming ahead of the $44B 3Y note auction (91282CHY0) at the top of the hour. WI is currently at 4.662%, 26.4bp cheap to last month's strong auction.

  • August auction recap: Treasury futures held mostly firm, short end weaker but off lows after a strong $42B 3Y note auction (91282CHU8) traded 19bp through: 4.398% high yield vs. 4.417% WI; 2.9x bid-to-cover vs. 2.88x prior month.
  • Indirect take-up climbed to 73.97% vs. 69.43% prior; direct bidder take-up receded to 15.7% vs. 19.79% prior; primary dealer take-up 10.33% vs. 10.78%.
  • Timing today's 3Y note sale: results will available shortly after the competitive auctions closes at 1300ET.

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