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Review 3Y Auction: Strong

US TSYS/SUPPLY

Treasury futures remain mostly firm, short end weaker but off lows after a strong $42B 3Y note auction (91282CHU8) trades 19bp through: 4.398% high yield vs. 4.417% WI; 2.9x bid-to-cover vs. 2.88x prior month.

  • Indirect take-up climbs to 73.97% vs. 69.43% prior; direct bidder take-up recedes to 15.7% vs. 19.79% prior; primary dealer take-up 10.33% vs. 10.78%.
  • The next 3Y auction is tentatively scheduled for September 11.

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