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Review 10Y Auction, .4bBp Tail

US TSYS/SUPPLY

Tsy futures pare gains after $36B 10Y note auction re-open (91282CDJ7) tailed slightly again: 1.723% high yield vs. 1.719% WI; 2.43x bid-to-cover better than last month's 2.43x but still shy a 2.51x 5-month average

  • Indirect take-up falls to 65.53% (lowest since July) vs. Dec's 68.84%; direct bidder take-up highest since June at 17.86% while primary dealer take-up bounces to 16.61% vs. 13.37% prior.
  • Next 10Y auction (re-open) is tentatively scheduled for February 9.

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