MNI BRIEF: Canada Warns Of Pain To U.S. From Trump Tariffs

MNI: FED TO GRADUALLY MOVE TOWARD NEUTRAL OVER TIME -MINUTES

MNI BRIEF: EC Sees Slight 2025 Euro Fiscal Contraction

MNI China Daily Summary: Tuesday, November 26

MNI BRIEF: China Supports Globalisation Despite Turbulence

MNI: PBOC Net Injects CNY11.0 Bln via OMO Tuesday

EZ/UK T-Bill Calendar: Greece, Italy Auction on Wedesday

EZ/UK Bond Supply Calendar: Italy, Finland Auction on Thursday

MNI: US OCT NEW HOME SALES -17.3% TO 0.610M SAAR

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

US TSYS/SUPPLY: 5Y Auction Review - Domestic Bidders Return Strongly

US TSYS/SUPPLY
USBulletMarketsFixed Income BulletsNorth America

Treasuries are little changed after the 5Y auction stopped through by 0.2bp, with 5Y yields 0.5bp lower since the bidding deadline for +3.0bp on the day. The bid-to-cover and primary dealer stats point to a stronger auction after the weak October showing, whilst the non-dealer split points to domestic bidders surging back to a fill a hole left by foreign institutions. 

  • Treasury sold $70bn of the 2Y at a high yield of 4.197% vs WI 4.199%.
  • The 0.2bp stop through is the first stop through since June.
  • The bid-to-cover was 2.43x vs 2.39x in both Oct and the five-auction average.
  • Primary dealer take: 11.30% vs 14.17% in Oct (highest since May) and a five-auction average of 13.2%.
  • Some further unusual swings in differences between indirect and direct takes:
  • Indirects take 64.12% vs 76.35% in Oct and a five-auction average of 70.67%. That’s the lowest since February after what was the highest in our tracking back to 2011.
  • Directs take: 24.58% after a very low 9.47% in Oct and a five-auction average of 16.09%. That’s the highest since Jul 2014.
178 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Treasuries are little changed after the 5Y auction stopped through by 0.2bp, with 5Y yields 0.5bp lower since the bidding deadline for +3.0bp on the day. The bid-to-cover and primary dealer stats point to a stronger auction after the weak October showing, whilst the non-dealer split points to domestic bidders surging back to a fill a hole left by foreign institutions. 

  • Treasury sold $70bn of the 2Y at a high yield of 4.197% vs WI 4.199%.
  • The 0.2bp stop through is the first stop through since June.
  • The bid-to-cover was 2.43x vs 2.39x in both Oct and the five-auction average.
  • Primary dealer take: 11.30% vs 14.17% in Oct (highest since May) and a five-auction average of 13.2%.
  • Some further unusual swings in differences between indirect and direct takes:
  • Indirects take 64.12% vs 76.35% in Oct and a five-auction average of 70.67%. That’s the lowest since February after what was the highest in our tracking back to 2011.
  • Directs take: 24.58% after a very low 9.47% in Oct and a five-auction average of 16.09%. That’s the highest since Jul 2014.