U.S. Treasury auctions of $32 billion a 10 year note that a high yield of 3.575%

• 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 3.575%
• WI level at the time of the auction 3.58%
• Tail -0.5 bps vs 6 month average of 2.0 bps
• Bid to cover 2.53X vs. 6 month average of 2.35X
• Directs (a measure of domestic demand) 17.92% vs. 6 month average of 18.6%
• Indirects (a measure of international demand) 67.02% vs. 6 month average of 62.0%
• Dealers (they are stuck with the residual) 15.06% vs. 6 month average of 19.4%

Auction Grade: B+

The international demand once again save the day as they took 67.02% of the auction versus the city average of 62%. The domestic demand was a bit light at 17.92 versus 18.6% average. Dealers were saddled with less than average at 15.06%.

The auction had a negative tail -0.5 basis points. That is much better than the 2.0 positive tail seen over the last six months. The bid to cover was comfortably above the 2.35X 6 month average (at 2.53X).

Like the three year note auction yesterday, the only disappointment is the domestic demand.

The treasury will auction off 30 year bonds tomorrow.