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CORRECTS/UPDATE: Review 5Y Auction: Tsy Sell Off on Weak 5Y Sale

US TSYS/SUPPLY

Tsys gap lower/test lows (5Y yield climbs to 4.0671%) after $61B 5Y note auction (91282CJW2) tails: 4.055% high yield vs. 4.035% WI; 2.31x bid-to-cover vs. 2.50x in the prior month.

  • Dealer take-up climbed to 20.37% vs 14.04% in December, Indirect take-up: 60.94% vs 70.6% prior, directs 18.69% vs 15.36% prior.
  • The next 5Y auction is tentatively scheduled for February 26

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