WI was trading at 1.352% %

  • High yield 1.338%
  • Tail -1.4 basis points
  • Bid to cover 2.59x versus six month average of 2.47x
  • Directs 16.62%, versus six month average of 16.2%
  • Indirects 71.05% versus six month average of 64.2%
  • Dealers 12.3%, versus six month average of 18.9%

Grade: A

The US 10 year note auction was strong with indirect bids (a proxy for overseas demand) well above the six month average. Dealers were saddled with a small 12.3% (and well below the six month average of 18.9%). The tail was -1.4 basis points below the WI level at the time of the auction. The Bid to cover was stronger than the six month average.

The only bad from the auction was that last month auction was even better with:

  • Tail of -3.1 basis points
  • Bid to cover of 2.65x
  • Indirects at 77.2%
  • Directs at 13.1%
  • Dealers at 9.6%.