With the US Treasury launching May's coupon issuance with today's sale of $38 billion in 3Y notes, traders were wondering amid today's sharp equity selloff, if we would see a flight to safety in the primary Treasury market.
We did not, and in fact the just concluded sale of $38 billion in 3Y paper was about as ugly an auction as we have seen in years.
Top - Yield - % - January - Concerning
Starting at the top, the high yield of 2.248% was the lowest since January 2018. However, more concerning is that the stop out tailed the 2.241% When Issued by 0.7bps, printing at 2.248%. This was the 3rd consecutive tailing auction, the 13tht ail in the last 14 auctions, and also the biggest tail since May 2017.