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 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
• 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.