Halister News

(Bloomberg) -- Current 3Y yield lower by 1.6bp at 0.916% before 1pm ET auction, 18th straight at $24b; WI 3Y yield about 0.935%, above last two 3Y auction stops.

• Most recent 3Y auction on May 10 drew 0.875%, 1.6bp below WI yield at bidding deadline, biggest stop through by a 3Y sale since 2009 according to Stone & McCarthy; 28.3% primary dealer award was 2nd lowest since 2009
• Current 3Y yield closed at YTD low 0.816% on April 7 amid losses for U.S. stocks and oil and JPY appreciation; it has since traded as high as 1.095% on May 25 amid rising market- implied odds of Fed rate increase this month
• 20 of past 23 3Y auctions stopped through, according to Stone & McCarthy; year-ago auction stopped even with WI yield
• 6-auction averages:
  • Bid-to-cover: 2.86 (low 2.71, high 3.14)
  • Dealer award: 35.2% (low 27.8%, high 44.7%)
  • Direct award: 12.3% (low 9.1%, high 18.6%)
  • Indirect award: 52.6% (low 41.5%, high 62.8%)
• Maturing 3Y has $32b outstanding
• Primary dealers’ position in 2Y-3Y sector in week ended May 25 was net short $1.89b vs $5.03b avg net short over past year