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Review 20Y Bond Auction Re-Open, Strong

US TSYS/SUPPLY

Tsy futures climb off session lows (USU2 +2 at 138-20; 30YY 3.1627%) after strong $14B 20Y bond auction (912810TH1) re-open: 3.420% high yield vs. 3.447% WI; 2.65x bid-to-cover vs. last month's 2.60x.

  • Indirect take-up climbs to new high of 77.97% vs. last months 67.44%; direct bidder take-up 14.09% vs. 20.20% prior, primary dealer take-up falls to new low of 7.94% vs. 12.35%.
  • Next 20Y auction (re-open) is tentatively scheduled for August 17.

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