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Review 10Y Auction: Small Tail, Tsys Dip

US TSYS/SUPPLY
  • Treasury futures dipped but hold off session low of TYM4 108-25.5 (10Y yield 4.4876%) after the $42B 10Y sale (91282CQK3) tailed 1.2bp: 4.483% high yield vs. 4.471% WI; 2.49x bid-to-cover vs. 2.34x prior.
  • Indirect take-up climbs to 65.52% vs. 61.81% prior; direct bidder take-up 18.74% from 14.24% prior; primary dealer take-up falls to 15.73% vs. 23.96% prior.
  • The next 10Y auction (re-open) is tentatively scheduled for June 11.

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