U.S. Treasury auctions off $44 billion of 7 year notes at high yield of 2.908%

• 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 2.908%
• WI level 2.891%
• Tail 1.7. The six month averages 0.4 basis points
• Bid to cover 2.41X. The six month average is 2.34X
• Directs 19.8%. The six month average is 22.9%
• Indirects 65% . The six month averages 61.6%
• Dealers 15.2%. The six month averages 15.4%.

Auction Grade: D

The $44 billion auction was met with decent demand from international investors but lacked domestic demand. As a result there was a large 1.7 basis point tail (versus average of 0.4 basis points). The dealers took what has been average over the last 6 auctions due to the decent international demand, but that was only on a large concession (i.e., tail).