- High-yield 3.625 (last month 4.14%)
- WI level at the time the auction 3.588%
- Tail 3.7 bps vs 1.8 bps average
- Bid to cover 2.31X vs six-month average of 2.40X
- DIrects (a measure of domestic demand) 18.7% vs 19.0%
- Indirects (a measure of international demand) 59.45% vs six-month average of 62.8%
- Dealers 21.86% vs 18.3%
The last auction was at a yield of 4.14% which was much higher than the current auction, but it too was met with tepid demand (3.4 bp tail).
Auction grade: D-
Not a lot of good in this auction.
The tail came in higher than the 1.8 basis point average and was even higher than the 3.4 basis point tail from last month. The cover was less than the six month average. The domestic demand was about to the average but international demand was worse than the six-month average (indirect bidders). That led to dealers holding a graders percentage than average at 21.86% vs 18.3% average.
It only gets a D- because the yield was about 50 bps less than a month ago.
