Tailing 2Y Auction Prices At Highest Yield Since 2007

Tailing 2Y Auction Prices At Highest Yield Since 2007

Moments ago the Treasury concluded the week’s first sale of coupon paper when it sold $42BN in 2Y paper in what was a solid, if not stellar auction.

The auction stopped at a high yield of 4.823%, which was above last month’s 4.670% and the highest yield since June 2007. The auction tailed the When Issued 4.820% by 0.3bps, ending the brief streak of two stopping through 2Y auction.

The bid to cover of 2.782% dipped below last month’s 2.860% but was above the recent average of 2.74%.

The internals were also above average, if hardly spectacular, with Indirects taking down 65.5%, below last month’s 68.5% but above the 63.0% recent average; and with Directs taking down 20.8%, or the most since March, and just above the six-auction average of 19.9%, Dealers were left with an award of 13.8%, the most since May.

Overall, a solid if hardly spectacular auction, one which benefited from the modest concession today as 10Y yields rose to 3.86%.

Tyler Durden
Mon, 07/24/2023 – 13:17

via ZeroHedge News https://ift.tt/70QKfup Tyler Durden

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