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Review 10Y Auction Re-Open: Weak, Largest Tail Since Dec'22

US TSYS/SUPPLY
  • Treasury futures extend session lows even further (TYM4 108-07, 10Y yield 4.5598% high) after the $39B 10Y re-open sale (91282CJZ5) tailed 3.3bp (largest since Dec'22): 4.560% high yield vs. 4.527% WI; 2.51x bid-to-cover falls to 2.34 vs. 2.51x prior.
  • Indirect take-up lowest since Oct'23 at 61.81% vs. 64.28% prior; direct bidder take-up 14.24% from 18.65% prior; primary dealer take-up highest since Nov'22 at 23.96% vs. 17.06%.
  • The next 10Y auction is tentatively scheduled for May 8.

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