- High yield 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.