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Small Tail for 5Y Note Auction, Tsys Hold Lower Range

US TSYS/SUPPLY

The $61B 5Y note (91282CCJ8) auction tails slightly: .02bp: high yield of 0.904% vs. 0.902% WI.

  • Bid-to-cover 2.36x just over 5 month average of 2.35x.
  • Indirects take-up declines to 57.62% vs. last month's 64.35% (prior high of 66.22% in August 2020); direct bidder take-up surged to 18.09% vs. 14.87% last month and 5M avg of 15.48%; primary dealer take-up: 24.29% just shy of the 5-month average of 24.88%.
  • The next 5Y auction is tentatively scheduled for July 27.

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