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Review 20Y Bond Auction: Strong Sale

US TSYS/SUPPLY

Tsy futures climb higher (TYZ3 +3 to 108-27 high)after $16B 20Y bond auction (912810TW8) trades through: draws 4.780% high yield vs. 4.790% WI; 2.58x bid-to-cover vs. prior month's 2.59x.

  • Indirect take-up 73.98% vs. 72.9% last month (highest since June, and vs 69.5% average); direct bidder take-up 16.51% vs. 15.2% prior; primary dealer take-up 9.51% vs. 11.9% (highest since April).
  • The next 20Y auction (re-open) is tentatively scheduled for December 20.

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