US treasury auctions off at 17 billion of 20 year notes.
- WI was trading at 1.329% at the auction time
- high yield comes in at 1.314%
- bid to cover ratio 2.63x vs 2.53x at last auction
- Dealers 21.9% vs 24.6% at the last auction
- Directs 16.454% vs. 14.71% at the last auction
- Indirects 61.624% vs. 60.728% at the last option
The issue is actually 19 years and 11 months. The treasury issued its inaugural 20 year bond last month at a yield of 1.22%.
Investor demand was strong for the auction with the dealers taking less than last month, the bid to cover a healthy 2.63x and the yield lower than the WI by 1.5 basis points.