Bond Market Update

Treasury Auction Preview

• $69 bln 2-year Treasury note auction (results at 13:00 ET)
  • Prior auction results:
    • High yield: 3.795%
    • Bid-to-cover: 2.52
    • Indirect bid: 56.2%
    • Direct bid: 30.1%
  • Average results of previous 12 auctions:
    • High yield: 4.196%
    • Bid-to-cover: 2.64
    • Indirect bid: 69.3%
    • Direct bid: 18.5%
      
      
• Yield check:
  • 2-yr: -2 bps to 3.97%
  • 3-yr: -3 bps to 3.93%
  • 5-yr: -5 bps to 4.03%
  • 10-yr: -7 bps to 4.44%
  • 30-yr: -10 bps to 4.94%