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Review 5Y Note Auction: Tail

US TSYS/SUPPLY
  • Tsy futures extend lows (TYH4 -12 at 109-16) bounce back to 109-18.5 last after the $64B 5Y note auction (91282CKD2) tailed: drawing 4.320% high yield vs. 4.312% WI; 2.41x bid-to-cover vs. 2.31x prior.
  • Indirect take-up at 59.33% vs. 60.94% prior, directs took 19.66% vs. 18.69% prior, primary dealer take-up 16.82% vs. 20.37% prior.
  • The next 5Y auction is tentatively scheduled for March 26.

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