Yesterday’s US 2-year sale tailed and given the $67 billion measurement, there’s a good threat this one may as effectively.
The final six 5 yr auctions have had 3 cease throughs and three tails, although the tails had been bigger at 1.6 bps on common.
BMO notes that: The
2s/5s/10s money butterfly is buying and selling on the cheaper finish of the vary since
late-2023 which boosts the relative worth case for 5s versus the wings.
