US treasury auctions of $35 billion of 7 year notes at a high yield of 4.062%

The US treasury auctioned off $35 million of 7 your notes:

• 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 4.062%
• WI level at the time of the auction 4.047%
• Tail 1.5 basis points versus six-month average of -0.2 basis points
• Bid Bid In a market, a bid is a price at which a buyer is willing to purchase a specific security, such as a currency, stock or bond. It is the highest price that a buyer is willing to pay for a security. Bids are typically made by market participants such as investors and traders, and are usually entered into an electronic order book or trading platform.When a market participant is looking to buy a security, they will typically place a bid at a certain price. If there are multiple buyers looking to pur In a market, a bid is a price at which a buyer is willing to purchase a specific security, such as a currency, stock or bond. It is the highest price that a buyer is willing to pay for a security. Bids are typically made by market participants such as investors and traders, and are usually entered into an electronic order book or trading platform.When a market participant is looking to buy a security, they will typically place a bid at a certain price. If there are multiple buyers looking to pur Read this Term to cover 2.49X versus six-month average of 2.62X
• Directs (a measure of domestic demand) 20.8% versus six-month average of 18.8%
• Indirects (a measure of international demand) 65.5% versus six-month average of 68.1%
• Dealers (they take the rest) 13.71% versus six-month average of 13.1%

Auction Grade: C-

The tail came in 1.5 basis points above the WI level. That was well above the -0.2 basis point average. The bid to cover was lower than the average. The directs (a measure of domestic demand) was above the average, but international demand was below average.

The dealers were saddled with a bit more than the average.

It is below average and close to a D-. The saving grace was that domestic demand was higher, but international players stayed on the sidelines instead.