Bond Market Update

Treasury Auction Preview

• $42 bln 10-year Treasury note auction (results at 13:00 ET):
  • Prior auction results:
    • High yield: 4.179%
    • Bid-to-cover: 2.60
    • Indirect bid: 67.5%
    • Direct bid: 24.8%
  • Average results of previous 12 auctions:
    • High yield: 4.224%
    • Bid-to-cover: 2.49
    • Indirect bid: 69.6%
    • Direct bid: 20.4%

• Yield check:
  • 2-yr: -3 bps to 4.19%
  • 3-yr: -2 bps to 4.26%
  • 5-yr: -3 bps to 4.36%
  • 10-yr: -1 bp to 4.67%
  • 30-yr: unch at 5.24%