U.S. Treasury auctions of $58 billion of 3-year notes at a high yield of 3.965%.

• WI level at the time of the auction 3.959%
• Tail 0.6 basis points versus a six month average of -0.4 basis points.
• Bid to cover 2.54X versus 2.67X six month average
• Dealers 16.9% versus six month average of 12.7%.
• Directds 20.14% versus six month average of 23.4%
• Indirects 62.96% versus six month average of 63.9%

Auction Grade D+

The auction was weak with a positive tail, bid to cover less than the six month average, the dealers being saddled with more of the average. The domestic buyers were weak while the international buyers were modestly lower than the average.

The grade is less than a C and with weakness across the board, I give it a D+ grade