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Review: Strong Tsy 2Y Note Auction

US TSYS/SUPPLY

Second consecutive stop -- Tsy futures bounce off lows following strong $60B 2Y (91282CCU3) note draws 0.242% vs. 0.252% WI.

  • Bid-to-cover was 2.65x well over 5 month average of 2.53x.
  • Indirect take-up climbs to 60.54% from 52.76% in July (50.94% 5M avg); direct bidder take-up of 21.18% continues to outpace 5M avg of 18.77%; primary dealer take-up falls to 18.28% vs. 5-month average of 30.29%.

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