US treasury auctions off 20 year bonds at a high yield of 3.678%

The U.S. Treasury auctioned off $12 billion of 20 year bonds. The auction details shows:

• High-yield 3.678%
• WI level at the time of the auction 3.705%
• Tail -2.7 bp vs six-month average of -0.5 basis points
• Bid to cover 2.83X versus six-month average of 2.57X
• Directs (a measure of domestic demand) 15.61% vs six-month average of 17.2%
• Indirects (a measure of international demand) 76.25% versus six-month average of 71.9%
• Dealers 8.14% (they take the rest) versus six-month average of 10.8%

Auction grade: B+

The 20 year bond auction was met with strong international demand that offset, more modest demand from domestic buyers. The Bid to cover was comfortably above the 6 months average. The tail was -2.7 bps through the WI level.

The only negative is the domestic demand was once again on the light side relative to the recent history.

/inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term