Bond Market Update

Treasury Auction Preview

• $16 bln 20-year Treasury bond auction (results at 13:00 ET)
  • Prior auction results:
    • High yield: 4.810%
    • Bid-to-cover: 2.63
    • Indirect bid: 70.7%
    • Direct bid: 12.3%
  • Average results of previous 12 auctions:
    • High yield: 4.573%
    • Bid-to-cover: 2.58
    • Indirect bid: 69.5%
    • Direct bid: 17.1%

• Yield check
  • 2-yr: +3 bps to 4.00%
  • 3-yr: +5 bps to 3.99%
  • 5-yr: +6 bps to 4.12%
  • 10-yr: +6 bps to 4.54%
  • 30-yr: +5 bps to 5.01%