Bond Market Update

Treasury Auction Preview

• $39 bln 10-year Treasury note reopening (results at 13:00 ET)
  • Prior auction results:
    • High yield: 4.421%
    • Bid-to-cover: 2.52
    • Indirect bid: 70.6%
    • Direct bid: 20.5%
  • Average results of previous 12 auctions:
    • High yield: 4.310%
    • Bid-to-cover: 2.57
    • Indirect bid: 70.5%
    • Direct bid: 17.1%

• Yield check:
  • 2-yr: -3 bps to 3.88%
  • 3-yr: -2 bps to 3.85%
  • 5-yr: -3 bps to 3.96%
  • 10-yr: -4 bps to 4.38%
  • 30-yr: -3 bps to 4.91%