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Review 30Y Bond Auction Re-Open, Small Tail

US TSYS/SUPPLY

Tsys gap lower but quickly recover after latest $22B 30Y Bond auction re-open (912810TB4) tailed again: 2.075% high yield vs. 2.072% WI; 2.35x bid-to-cover better than 2.22x last month (2.29x 5-month average)

  • Indirect take-up climbs to 64.98% vs. 60.80% in Dec; direct bidder take-up recedes to 17.08% vs. 18.49% prior, while primary dealer take-up slips to 17.95% vs. 20.71%.
  • The next 30Y auction is tentatively scheduled for February 10.

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