US sells USD 42bln of 10yr notes (new issue) at 4.483%; tails by 1bp

• High Yield: 4.483% (prev. 4.56%, six-auction average 4.276%)


• Tail: 1bp (prev. 3.1bps, six-auction avg. 0.9bps)


• Bid-to-Cover: 2.49x (prev. 2.34x, six-auction avg. 2.49x)


• Dealers: 15.7% (prev. 24.0%, six-auction avg. 16.9%)


• Directs: 18.7% (prev. 14.2%, six-auction avg. 17.0%)


• Indirects: 65.5% (prev. 61.8%, six-auction avg. 66.1%)

Reaction details (18:16)

• T-Notes (M4) chopped between 108-26/108-29 as the results were released.


• E-mini S&P 500 (M4) fell from 5206 to 5201 in an immediate reaction before swiftly paring the move over the next few minutes.

Analysis details (18:11)

• An average 10yr new issue auction from the Treasury but perhaps a bit flat vs some of the bullish enthusiasm post-Powell and NFP.


• USD 42bln were sold at 4.483%, more expensive than last month's 4.56%, but still closer to the highs of the year (4.74%) than the lows (3.82%).


• The auction tailed the When Issued yield by 1bp, which is in line with the six-auction average and much better than last month's 3.1bp tail, but hardly indicative of exuberant demand.


• Dealers were left with 15.7%, much less than the prior 24% and beneath the average 16.9%, with both Directs and Indirects seeing a step up in takedown from last month.


• The USD 25bln 30yr auction on Thursday remains the last auction hurdle for a while with no US coupon auctions next week.

08 May 2024 - 18:02- Fixed IncomeImportant- Source: Newswires