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Strong 2Y Auction

US TSYS/SUPPLY

Strong $60B 2Y note (91282CCD1) auction trades through with high yield of 0.152% vs. 0.160% WI, strongest in over a year. Tsy futures gain slightly, extend duration..

  • bid-to-cover 2.74x, highest since Aug '20, compares to 2.49x 5 month average.
  • Indirects take-up climbs to 57.06% vs. 43.35% in April; direct bidder take-up at 18.03% vs. 18.42% last month, primary dealer take-up of 24.91% well below 5-month average of 32.15%.
  • The next 2Y auction is tentatively scheduled for June 22.

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