Halister News

(Bloomberg) -- Current 3Y yield lower by 1.4bp at 0.817% before 1pm ET auction, 14th straight at $24b; WI 3Y bid at about 0.840%, below 3Y auction stops since 0.802% in March 2014.

• Treasury quarterly refunding announcement on Feb. 3 left 3Y auction size unchanged and included cuts of $1b to 5Y, 7Y, 10Y and 30Y that were not widely expected
• Most recent 3Y auction on Jan. 12 drew 1.174%, 1.1bp below WI yield at deadline, according to Stone & McCarthy; indirect award was highest since Nov. 2009 record while primary dealer award was lowest since Nov. 2009
• Current 3Y yield touched 1.379% on Dec. 30, highest since April 2011; it retreated to 0.785% today, lowest since Oct. 2, amid declines for European and U.S. equities
• 18 of past 19 3Y auctions stopped through by as much as 1.1bp, according to Stone & McCarthy; year-ago auction stopped through by 1bp
• 6-auction averages:
  • Bid-to-cover: 3.10 (low 2.82, high 3.34)
  • Dealer award: 37.8% (low 27.8%, high 44.1%)
  • Direct award: 11.7% (low 8%, high 18.6%)
  • Indirect award: 50.4% (low 40.8%, high 62.9%)
• Maturing 3Y has $32b outstanding
• Primary dealers’ position in 2Y-3Y sector in week ended Jan. 27 was net short $3.41b vs $6.19b avg net short over past year