WI level of the 10 year note at the auction time was 2.129%
– high-yield rate 2.13%
– WI was at 2.129% at the auction time
– bid to cover 2.49x. Higher than the six-month average of 2.42x
The auction is decent. The only negative was the small-tail. The bid to cover was higher than the six-month average. Foreign
WI yield at option 2.125%
– WI at auction 2.125%
– High yield 2.144%. Tail 1.9 bps
– Bid to cover 2.30x vs 6-month average of 2.53X
– Dealer 30.45% vs 17.2% average over 6 months
2 and 5 year auctions were mixed yesterday
The US treasury will auction off $32B of 7-year notes at the top of the hour. Yesterday, the treasury auctioned 2 and 5 year notes. The 2 year auction was stellers (high Bid to cover and negative tail). The 5 year was not as great.
2nd leg of the auctions this week
The US treasuries auction off US$24 billion of 10 year notes at the top of the hour. THe current WI is trading at 2.13%
Yield on the sale slightly below expectations
The US Treasury sold $41 billion in 5-year notes at 2.065%. That’s slightly lower than 2.067% in the WI market ahead of the sale.