WI level at the time of the auction was 2.051%

  • High yield 2.065%
  • WI level at the time of the auction 2.051%
  • Tail +1.4 basis points
  • Bid to cover 2.34 xversus six month average of 2.34X
  • Directs 19.4% vs six month average of 18.7%
  • Indirects 60.2% vs six month average of 61.7%
  • Dealers 20.4% vs six month average of 19.6%

Auction grade: D+

Highlights.

  • The only bright spots was the bid to cover was average over the last six months and the Directs were higher than the average as well.
  • The international demand was less than average.
  • The dealers were saddled with more than average
  • The auction required a 1.4 basic point concession to float the issue (vs the WI yield at the time of the auction).

Overall, that puts the grade at less than a C (average). Is it C- or D+? You can go either way.