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Review 5Y Auction: Rates Rally as 5Y Trades Through

US TSYS/SUPPLY

Tsys extend session highs (5Y yield slips to 3.7919% low) after $58B 5Y note auction (91282CJR3) trades through: 3.801% high yield vs. 3.812% WI; 2.50x bid-to-cover vs. 2.46x in the prior month.

  • Dealer take-up receded to 14.04% vs 16.85% in November, in-line with the 5-auction average of 14.0%. Indirect take-up: 70.6% vs 65.52% prior, directs 15.36% vs 17.63% prior.
  • The next 5Y auction is tentatively scheduled for January 24

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