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Review 3Y Note Auction:

US TSYS

Treasury futures pare losses slightly (TYU4 110-12, -7) after $58B 3Y note auction (91282CKZ3) strops .6bp through: 4.399% high yield vs. 4.405% WI; 2.67x bid-to-cover vs. 2.43x prior.

  • Indirect take-up slips to 63.97% vs. 64.14% prior; direct bidder take-up rebounds to 21.26% vs. 15.9% prior; primary dealer take-up falls to 14.78% vs. 19.96% prior.
  • The next 3Y auction is tentatively scheduled for August 6.

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