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Review $48B 5Y Note Auction: Small Tail

US TSYS/SUPPLY

Tsy futures holding modest gains in 2s-10s, after $48B 5Y note auction (91282CET4) tails slightly: 2.736% high yield vs. 2.732% WI; 2.44x bid-to-cover vs. 2.41x last month.

  • Indirect take-up: slips to 62.93% vs. 64.03% in April
  • Primary dealer take-up: climbs to 20.03% vs. 16.52%; Direct take-up recedes to 17.04% vs. 19.45%.
  • The next 10Y auction is tentatively scheduled for June 27.

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