- High yield 4.813%
- WI level at the time of the auction 4.792%
- Tail 2.1 basis points six month average of -0.2 basis points
- Bid to cover 2.27X versus six month average of 2.38X
- Directs 23% versus six month average of 24.2%
- Indirects 59.5% versus six month average of 61.9%
- Dealers 17.5% versus six month average of 13.9%
Auction grade:D
The tail of +2.1 basis points vs six month average of -0.2 basis points is an indication of low demand. The bid to cover is also lower than the six-month average. Directs (a proxy for domestic demand) and indirects (a proxy for international demand) were also below the six-month averages. That raised the dealer take to a high 17.5% vs 13.9%.
All the major components were below the six-month averages. Not a good auction.
The three-year note auction on Tuesday was about average. The 10-year note auction yesterday was below average.
US stocks are not all that healthy with the NASDAQ index still holding onto a 28-point gain or 0.14%. The S&P index is down -0.26%.
Rick Santelli from CNBC gave it a grade of D as well.
