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Review: 5Y Note Auction, Small Tail

US TSYS/SUPPLY

Tsy futures holding near session highs after $61B 5Y note (91282CCP4) auction tails slightly: .01bp: high yield of 0.710% vs. 0.709% WI.

  • Bid-to-cover 2.36x just over 5 month average of 2.35x.
  • Indirects take-up climbs to 58.07% vs. 57.62% in June (59.01% 5M avg); direct bidder take-up slips to 17.75% vs. 18.09% last month (5M avg of 16.29%); primary dealer take-up: 24.18% still shy of the 5-month average of 24.70%.
  • The next 5Y auction is tentatively scheduled for August 25

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