HALISTER1: RATES: WI 10Y Yield May Limit Auction Participation, CRT Says

RATES: WI 10Y Yield May Limit Auction Participation, CRT Says

(Bloomberg) -- Today’s sell-off is “pricing-in a meaningful concession off the overnight highs”; however, WI suggesting lowest yielding 10Y auction since Dec. 2012 “surely a disincentive for aggressive participation,” CRT strategist Ian Lyngen says in note.
  • “Optimistic” about today’s $23b 10Y sale at 1pm and risks are “skewed toward a stop-through”
  • 10 out of last 12 auctions in this sector have stopped through by avg. of 0.8bp
  • Non-dealer interest likely to be “significant test of overseas demand for the sector at current yield levels”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Ian Lyngen (CRT Capital Group LLC)

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