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US TSYS/SUPPLY: Review 20Y Bond Auction: Better Than Last, Not Better Than Most

US TSYS/SUPPLY
USBulletMarketsFixed Income BulletsNorth America

The $13B 20Y Bond auction tails by 1.5bp, with a high yield of 4.686% versus a when-issued yield at auction cut-off of 4.671%.

  • That keeps the consecutive streak of tailed auctions alive at 4 for the 20Y, with the latest sale showing fairly average statistics though better than November (which saw a high yield almost identical to December's sale, at 4.680%):
  • The 1.5bp tail compares to a 5-auction average of 1.3bp, though better than the 3.1bp seen in November.
  • Dealers took down 17.9% of competitives (vs 22.6% prior, 14.8% 5-auction average), with indirects 62.0% (69.5% prior, 70.1% avg) and directs 20.1% (7.9% prior, 15.1% avg).
  • Bid/cover of 2.50x was likewise unremarkable vs the 5-auction average 2.53x, but better than November's 2.34x.
  • Apparently there weren't high hopes for the 20Y sale given recent poor sales, as there was very limited reaction in Treasury markets, with March TY futures down 1 tick at 109-29 vs pre-auction cutoff.
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The $13B 20Y Bond auction tails by 1.5bp, with a high yield of 4.686% versus a when-issued yield at auction cut-off of 4.671%.

  • That keeps the consecutive streak of tailed auctions alive at 4 for the 20Y, with the latest sale showing fairly average statistics though better than November (which saw a high yield almost identical to December's sale, at 4.680%):
  • The 1.5bp tail compares to a 5-auction average of 1.3bp, though better than the 3.1bp seen in November.
  • Dealers took down 17.9% of competitives (vs 22.6% prior, 14.8% 5-auction average), with indirects 62.0% (69.5% prior, 70.1% avg) and directs 20.1% (7.9% prior, 15.1% avg).
  • Bid/cover of 2.50x was likewise unremarkable vs the 5-auction average 2.53x, but better than November's 2.34x.
  • Apparently there weren't high hopes for the 20Y sale given recent poor sales, as there was very limited reaction in Treasury markets, with March TY futures down 1 tick at 109-29 vs pre-auction cutoff.