U.S. Treasury auctions off $27 billion of 20 year bonds at a high yield of 1.850% versus WI level of 1.850%

WI level at the time of the auction was 1.850%

• High yield 1.850%
• WI level 1.850%
• Tail 0.0
• Bid to cover 2.44x vs 6 month average of 2.34X
• Directs 18.68% vs six month average of 18.7%
• Indirects (proxy for foreign demand) 62.3% vs. six month average of 59.0%
• Dealers 19.02% vs six month average of 22.3%

Auction Grade: B

Highlights:

• No tail. The yield is at the WI level at the time of the auction
• Bid to cover was greater than the six month average
• Indirects took more than the six month average
• Dealers were saddled with less than the 6 month average

The foreign demand was the difference maker. Solid B grade

Rick Santilli at CNBC grade: B