Halister News

(Bloomberg) -- Although sector appears “modestly rich” along the curve, recent 3Y auctions have been “well-received,” and any continued FTQ bid for USTs “should allow” $24b auction at 1pm “to be absorbed with relative ease,” JPMorgan strategists led by Jay Barry say in Feb. 8 note.

• Since last auction on Jan. 12, 3Y yields have fallen by 36bp, and sector appears ~4bp rich vs. wings after adjusting for level of rates and slope of the curve
• 3Y roll opened at +2bp and tightened to +1.625bp, “roughly in line with the erosion of carry”