WI at the auction time was 2.465%
- High yield: 2.479%
- Bid to cover:2.17x. The six-month average 2.48x
- Dealers take: 35.2%. The six-month average 23.8%
- Directs:11.5%
- Indirects: 53.3%
Not a good auction. The bid to cover was the lowest since March 2009 (see chart below). There was a tail of 1.2 basis points. Dealers are stuck with 35.2% of the auction vs a 6 month average of 23.8%.
The low yield may have discouraged investors, and/or maybe China boycotted the auction?
The yield has moved up to 2.485% after the auction.
