US treasury auctions off $40 billion of 3 year notes at a high yield of 4.635%

• High-yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term 4.635%
• WI level at the time of the auction 4.641%
• Tail versus -0.6 basis points versus six-month average of 0.3 basis points
• Bid to cover 2.73X times versus six-month average of 2.56X
• Dealers 16.84% versus 21.1% six-month average
• Directs 20.67% versus six-month average of 18.9%
• indirects 62.49% versus six-month average of 60.1%

The auction grade comes in at A-

Highlights:

there was a -0.6 basis point Basis point A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' Read this Term tail versus the WI level at the time of the auction. The bid the cover was comfortably above the six month average. Directs and in directs both were higher than the six month average leaving the dealers with less than normal.

Compared to last month's auction where the tail was a full 4.0 basis points, the results today showed strong demand at current levels across the board.

Of course the yield of this month was well above the yield from last month a 4.073% which is an incentive for investors