Bond Market Update

Treasury Auction Preview

• $70 bln 5-year Treasury note auction (results at 13:00 ET)
  • Prior auction results:
    • High yield: 4.071%
    • Bid-to-cover: 2.39
    • Indirect bid: 78.4%
    • Direct bid: 12.4%
  • Average results of previous 12 auctions:
    • High yield: 4.087%
    • Bid-to-cover: 2.39
    • Indirect bid: 70.1%
    • Direct bid: 17.9%

• Yield check:
  • 2-yr: -1 bp to 3.80%
  • 3-yr: +1 bp to 3.77%
  • 5-yr: +2 bps to 3.88%
  • 10-yr: +2 bps to 4.32%
  • 30-yr: +3 bps to 4.87%