Bond Market Update

Treasury Auction Preview

• $58 bln 3-year Treasury note auction (results at 13:00 ET):
  • Prior auction results:
    • High yield: 3.609%
    • Bid-to-cover: 2.65
    • Indirect bid: 56.5%
    • Direct bid: 29.5%
  • Average results of previous 12 auctions:
    • High yield: 3.768%
    • Bid-to-cover: 2.63
    • Indirect bid: 64.6%
    • Direct bid: 22.2%

• Yield check:
  • 2-yr: -3 bps to 3.45%
  • 3-yr: -4 bps to 3.51%
  • 5-yr: -5 bps to 3.69%
  • 10-yr: -6 bps to 4.14%
  • 30-yr: -7 bps to 4.78%