US Treasury 5Y Auction Nets 2.66%, Highest Since December 2009 (TYVIX Vol Remains Subdued)

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(Bloomberg) — $35b auction was awarded at 2.658%, matching the When Issued (WI) yield at bidding deadline, highest 5Y auction stop since 2.665% in December 2009; compares with 2.434% in January.
  • 29.3% primary dealer award was higher than previous as indirect award declined to 58.0%, lowest since April, offsetting increase in direct award to 12.7%
  • 2.44 bid-to-cover compares with 2.48 average for previous six
  • Auction was expected to draw support from outright yield and short-covering, offset by increased size and FOMC minutes risk


Yes, it was the highest auction stop since December 2009, just after the end of The Great Recession.


At least the TYVIX  (CBOE CBOT 10 year U.S. Treasury Note Volatility Index) is lower now than in 2009.


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