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Review 5Y Note Auction: Better Demand Relative to 2y Sale

US TSYS
  • 5y sale stops through by 1bps (2.543% vs. WI of 2.553%) for a healthier auction result relative to the 2y. High yield at 2.543% marks the highest at auction since mid-2019
  • Bid/cover at 2.53 is ahead of the 5 auction average (2.46) - last b/c of that size back in October last year. Appears that concession built in since last sale (yield up around 67bps) has proved attractive, a decent test for demand in the belly of the curve.
  • 5y Note catches small bid on the results, adds around three ticks to trade just below earlier highs of 114-09

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