Halister News

(Bloomberg) -- UST 2Y trading “slightly higher” today, “failing to price in an outright concession,” although it’s underperforming on the curve and “offering a modest accommodation,” CRT strategist Ian Lyngen says in note.

• “Optimistic” for $26b auction 1pm ET amid “broader risk- asset profile,” and “tendency for this benchmark to meet strong demand”
• “Relatively low net new cash needs” at $17.9b (lowest since July) and $70.1b of nominal maturities “will provide plenty of cash in the front-end to reinvest”
• WI suggesting highest yielding 2Y auction this year is a “dynamic that might bring in otherwise sidelined non-dealer bidding”