Bid to cover at 2.56x vs 2.68x last

The US treasury sold 36 billion of three-year notes at a high yield of 2.989%. That is the highest yield since May 2007.

  • US awarded 32.32% of the bids at the high
  • Bid to cover ratio 2.56x
  • Non competitive bids $96.46 million
  • the high-yield was less than one basis point below its 11:30 WI level
  • primary dealers take 43.33%
  • Directs take 9.77%
  • Indirects 46.9%
  • The bid to cover is the lowest since July

Not a great auction.

The US will auction 10 year notes at 1 PM ET. They will auction $23B at that time.

Despite the sharp fall in stocks, there has not been a material run lower in yields on safety. Yes, yields are off the highs, but they remain up on the day.