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Review, Strong 20Y Bond Auction Re-Open

US TSYS/SUPPLY

Tsy futures gap higher (30YY falls to 2.8874% low) after strong $16B 20Y note auction reopen (912810TF5) trades through with 3.095% high yield vs. 3.120% WI; 2.80x bid-to-cover vs. last month's 2.72x.

  • Indirect take-up climbs to new high of 75.94% vs. 64.39% prior; direct bidder take-up recedes to 15.32% vs. 26.03% prior, primary dealer take-up falls to 8.74% vs. 9.59%.
  • Next 20Y auction (re-open) is tentatively scheduled for May 18.

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