The U.S. Treasury auctioned off $34 billion of 10 year notes:
- High yield 2.72%
- WI level 2.69% at the time of the auction
- Tail 3.0 BPS
- Bid to cover 2.43X versus six month average of 2.50X
- Directs (a measure of domestic demand) 17.9% versus a six month average of 16.5%
- Indirects (a measure of international demand) 64.3%% versus a six month average of 70.9%
- Dealers (they take the rest) 18.66% versus a six month average of 12.7%
The last auction came in at a high yield of 1.920% with a tail of 0.3 basis points. The six month averages for tails is -0.2 basis points.
Auction grade: F
Lowlights:
- Tail of 3 BPS vs an average of -0.2 bps
- Directs were the only bright spot at 17.9% above the 6 month average but it did take 3 bp tail too
- Indirects were much lower than the 6-month average. So international investors did not show up
- Dealers are saddled with well above the six month average
CNBCs Santelli gave it a D- grade. He was generous.
Rick Santelli gave the auction a D-
