US sells USD 58bln of 3-year notes; stops through 0.1bps

The recent auction of USD 58 billion in 3-year notes shows a mixed but slightly positive demand, with a tail of -0.1bps indicating tight pricing relative to the auction's high yield.

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US sells USD 58bln of 3-year notes; stops through 0.1bps

European Closes: Euro Stoxx 50 +0.32% at 6,017, Dax 40 +0.54% at 25,398, FTSE 100 +0.16% at 10,141, CAC 40 -0.04% at 8,359, FTSE MIB +0.03% at 45,732, IBEX 35 +0.14% at 17,674, PSI -0.31% at 8,494, SMI +0.02% at 13,425, AEX +0.54% at 994.

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  • High Yield: 3.609% (prev. 3.614%, six-auction avg. 3.636%): WI 3.610%
  • Tail: -0.1bps (prev. -0.8bps, six-auction avg. -0.4bps)
  • Bid-to-Cover: 2.65x (prev. 2.64x, six-auction avg. 2.65x)
  • Dealers: 14% (prev. 9.0%, six-auction avg. 12.0%)
  • Directs: 29.5% (prev. 19.0%, six-auction avg. 24.6%)
  • Indirects: 56.5% (prev. 72.0%, six-auction avg. 63.3%)
Context

Notably, the increase in direct bids could signal stronger institutional interest, which may support short-term yields; however, the lower indirect bid suggests potential caution in broader market sentiment. Overall, this auction may reinforce the current yield outlook without drastically altering the interest rate environment.

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