US Treasury Sets Record with $67 Billion Auction of 5-Year Notes
Tuesday, 26 March 2024, 16:54
Record $67 Billion 5-Year Notes Auction
Yesterday's US 2-year sale tailed and given the $67 billion size, there is a good risk this one could as well. The last six 5-year auctions have had 3 stop throughs and 3 tails, though the tails were larger at 1.6 bps on average. BMO notes that:
- The 2s/5s/10s cash butterfly is trading at the cheaper end of the range since late-2023 which enhances the relative value case for 5s versus the wings.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.