- High yield 4.935%
- WI level at the time of the auction 4.951%
- Tail -1.6 basis points vs six month average of -0.1 basis points
- Bid to cover 2.79X vs six month average of 2.62X
- Directs 21.86% vs six month average of 18.0%
- Indirects 67.43% versus six month average of 68.0%.
- Dealers 10.72% versus six month average of 14.0%
AUCTION GRADE: A
Very strong auction after an absence of auctions of late. The domestic buyers were well above the six month average. The international buyers which have been lower of late were near the six-month average. As a result, the dealers were saddled with much less than what is normal which is good news.
The tail was -1.6 basis points which was well below the -0.1 basis point average.
Nothing wrong with this auction. Strong demand.
Despite the strong auction, yields are still higher on the day in the US. The 10 year yield is at 4.387%, +5.2 basis points. The 20 year yield is near the auction level. The 30 year is at 4.957%, or +5.4 basis points
This article was written by Greg Michalowski at investinglive.com.
