Bid to cover comes in at 2.37x vs 2.48x previous
The US sold 20B of nine-year an 11 month notes that 2.384%. Awarded 83.2% of the bids at the high yield.
- The bid to cover ratio came in at 2.37 versus 2.48 at the last auction
- 34.4% was awarded to primary dealers. At the last auction the primary dealers took only 23%
- 8.4% went to direct bidders
- 57.2% went to indirect bidders. Indirect bidders include foreign central banks. The last auction attracted 68%
- the high yield was less than one basis point above its 1 PM when issued level
- the yield of 3.84% was the highest since May when it auctioned at 2.4%.
- the lower bid to cover ratio suggests weaker demand. It was the lowest since the September auction.
Overall, not a great auction.
The dollar is moving a little higher.
The GBPUSD is trading at new session lows and moving away from the 100 hour MA, 38.2% and trend line at the 1.33544-63 area. The low just traded to 1.3329. The low last week reached 1.33188.
The USDJPY is trading at a NY session high and is back to unchanged at 133.45 area.
