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IPFS News Link • Government Debt & Financing

3Y Auction Prices At Highest Yield Since May 2007

• by Tyler Durden

While unlike a month ago, when the US Treasury had a record amount of Bills, Notes and Bonds for sale, the selling calendar is not quite as busy, there is still a deluge of paper for sale over the next few days, and after today's Bill auction, moments ago the US Treasury sold $30 billion in 3Y Notes at a yield of 2.450%, the highest since May 2007 (when 3Y issuance was briefly suspended until Nov. 2008), just barely tailing the When Issued by 0.1bps.

The internals were in line, with a 2.85 Bid to Cover, below last month's 2.94 and the 6 month auction average of 2.97.

Indirect bidders dipped modestly, down from 50.0% to 47.6%, the lowest since last Sept, with Directs taking down 11.6%, above the 6MMA of 9.0% leaving Dealers with 40.9%, the highest award since Sept. 2017.

Overall, a mediocre auction to start this week's issuance, with all eyes now on tomorrow's 10Y auction as the Treasury ramps up supply to fund its $1+ trillion deficit.