U.S. Treasury sold $25 billion of 30 year bonds:
- High yield 4.694%
- WI level at the time of the auction 4.684%
- Tail 1.0 basis points vs 6 month average of 0.3 basis points
- Bid to cover 2.29X vs 6 month average of 2.36X
- Directs 14.50% vs 6 month average of 26.0%
- Indirects 70.99% vs 6 month average of 61.6%
- Dealers 14.51% vs 6 month average of 12.4%
Auction Grade: C-
There was a positive tail of 1 basis points above the WI level, and the Bid to cover was below the six-month average indicative of less demand.
The domestic demand was well off the average while international demand was higher.
The dealers were saddled with more of the issue to distrubute. Overall the grade is below average.
