Bond Market Update

Treasury Auction Preview

• $69 bln 2-year Treasury note auction (results at 13:00 ET):
  • Prior auction results:
    • High yield: 3.955%
    • Bid-to-cover: 2.57
    • Indirect bid: 63.3%
    • Direct bid: 26.2%
  • Average results of previous 12 auctions:
    • High yield: 4.116%
    • Bid-to-cover: 2.65
    • Indirect bid: 69.7%
    • Direct bid: 18.5%

• Yield check:
  • 2-yr:  unch at 3.83%
  • 3-yr: -1 bp to 3.77
  • 5-yr: -2 bps to 3.87%
  • 10-yr: -1 bp to 4.32%
  • 30-yr: -1 bp to 4.86%