- High yield
- WI (when-issued) yield at the time of the auction 3.890%
- Tail 2.0 bps
- Bid to cover 2.43X versus 6 month average of 2.39X.
- Tail 2.0 basis points vs 6 month average of -0.2 basis points
- Directs (a measure of domestic demand) 20.13% vs 6 month average of 18.4%.
- Indirects (a measure of international demand) 69.02% vs 6 month average of 70.8%
- Dealers (they take the rest) 10.9% versus 6 month average of 10.8%.
Auction Grade: C
It was a weird auction as demand was in line when looking at the indirects, directs and dealer percentages. However, the tail of 2.0 basis points was disappointing. The Bid to cover, near the average as well.
I give it a C with a tilt to C-.
