News Headline Summary

Results of USD 35bln 5y note auction:

- Yield 1.624% vs. Exp. 1.618%; WI stopped at 1.620%
- B/C 2.38 vs. Avg. 2.66 (Prev.2.46)
- Indirects 40.3% vs. Avg. 48.0% (Prev. 53.9%)
- Dealers 46.93% vs. Avg. 38.7% (Prev. 37.8%)
- Allotted at high 91.92%

Update details:

- This auction high falls on range for 7yr reopening.
- The auction itself was particularly lacklustre with the yield tailing by 4bps at the bidding deadline and lower bid/cover buy-side. Demand was below the previous and average although dealers took a larger chunk of the issuance than seen previously.

Reaction details:

- In an immediate reaction 5y note futures fell 2.25 ticks from 120.15+ to 120.1325.

Print 17:02, 28 Aug 2013 - Fixed Income - Source: Newswires