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Tsy 5Y Note Auction Review: Small Tail

US TSYS/SUPPLY

Second consecutive auction tail, Tsy futures holding near middle of session range after paring gains last half hour. Not much of a react after $57B 5Y note auction (91282CDQ1) tailed: 1.263% high yield vs. 1.257% WI; 2.41x bid-to-cover vs. last month's 2.34x.

  • Indirect take-up: new year high of 65.66% vs. 56.88% last month
  • Primary dealer take-up: slips to 20.02% vs. 26.88%; Direct take-up 14.32% vs. 16.24%.
  • The next 10Y auction is tentatively scheduled for January 25.

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