US sells USD 46bln 2yr notes; tails 0.7bps

• High Yield: 3.084 (prev. 2.519%, six-auction average 1.797%)


• WI Yield: 3.077%


• Tail: 0.7bps (prev. -0.7bps, six-auction avg. -0.3bps)


• Bid-to-Cover: 2.51x (prev. 2.61x, six-auction avg. 2.64x)


• Dealers: 23.24% (prev. 15.4%, six-auction avg. 18.6%)


• Direct: 25.28% (prev. 22.1%, six-auction avg. 18.6%)


• Indirect: 51.47% (prev. 62.6%, six-auction avg. 62.8%)

Analysis details (16:48)

The 2yr auction was disappointing, seeing a 0.7bps tail after the prior auction's 0.7bps stop through, and against the six-auction average of 0.3bps stop through. Demand was weak with the Bid-to-Cover falling to 2.51x from 2.61x, and beneath the six-auction average of 2.64x, as indirect bidders dissipated, taking only 51.47% vs 62.6% at the last auction (average 62.8%), although it was met with an uptake of Direct bidders, who took 25.28%, above the prior 22.1% and the average of 18.6%. The rise in direct bidders was not enough to offset the declined participation from indirects, leaving dealers (forced buyers) with a 23.24% take of the auction, above both the prior and six auction average. 

27 Jun 2022 - 16:32- Fixed IncomeImportant- Source: Newsquawk