US treasury auctions off $32 billion of 10 year note at a high yield of 3.985%

The U.S. Treasury auctioned off $32 billion of 10 year 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 3.985%
• WI level at the time of the auction 3.958%
• Tail 2.7 bps versus a six month average of 1.3 basis point Basis point A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' Read this Term
• Bid to cover 2.35X versus a six month average of 2.41X
• Directs 19.98% versus a six month average of 18.5%
• Indirects 62.29% versus segment average of 63.8
• Dealers 17.73% versus six month average of 17.7%

Overall the auction was sloppy. There was a large tail of the 2.7 basis points versus the WI level. Domestic demand nevertheless was higher than the six month average at nearly 20% versus 18.5%. The international demand was marginally lower.