the US treasury auction of $37 billion of 10 year note is auctioned off with high demand

  • high yield 1.904%
  • WI at the time of auction1.926%
  • Tail -2.2 basis points
  • bid to cover 2.68X vs 2.52x six month average
  • indirects -a measure of international demand - came in at 77.56% versus six month average of 70.8%
  • directs, a measure of domestic demand, came in at 15.0% versus 16.2% six month average
  • dealers took a very low 7.4% versus 13.0% six month average

Auction Grade: A

  • The auction of $37 billion of 10 year notes was met with strong international demand. The international players are once again are showing their desire to buy US treasuries at higher yields.
  • The domestic demand was less than average.
  • Bid the cover was well above normal at 2.68 times versus 2.52 times average
  • Dealers barely have any for themselves at 7.4%