US sells USD 58bln of 3-year notes; Tail 0.6bps

The recent auction of 3-year U.S.

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US sells USD 58bln of 3-year notes; Tail 0.6bps

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  • Tail: 0.6bps (prev. -1.2bps, six-auction average -0.4bps); WI 3.959%
  • High Yield: 3.965% (prev. 3.897%, six-auction average 3.633%)
  • B/C: 2.54x (prev. 2.68x, six-auction average 2.67x)
  • Dealer: 16.9% (prev. 13.3%, six-auction average 12.7%)
  • Direct: 20.14% (prev. 11.9%, six-auction average 23.4%)
  • Indirect: 62.96% (prev. 74.8%, six-auction average 63.9%)
Context

notes saw a slightly positive tail of 0.6bps, indicating a marginal increase in demand from the previous auction. However, the bid-to-cover ratio declined, suggesting a weaker overall interest compared to both the prior auction and historical averages. This could signal a shift in market appetite for duration and may impact yield expectations and risk sentiment across fixed income and related asset classes.

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