- High yield 3.908%
- Tail: -1.1 basis points 6-month average 0.5bps
- Bid -to-Cover: 2.52X versus 6 month average 2.35X
- Directs (a measure of domestic demand): 18.13% versus 6-month average 19.2%
- Indirects (a measure of foreign demand): 72.91% versus 6-month average 68.9%.
- Dealers (they take the rest): 8.96% 6-month avg. 11.8%
Auction Grade: A
Highlights include a stronger bid to cover, which are both indicative of a strong demand. The foreign investors showed up today. Yesterday the 3 and 10 year note auctions were light of foreign interest on a relative basis. The dealers were saddled with less than the average.
Overall, a solid auction ahead of the rate decision tomorrow.