US treasury auctions off $42 billion of two-year notes at a high yield of 3.969%

• 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 3.969%
• WI level at the time of the auction 3.966%
• Tail 0.3 basis points versus a 6 month average of 0.0 basis points
• Bid to cover Cover When a trader says he or she is going to "cover," it typically refers to the act of closing out a short position in a security, stock, or forex position. Short selling is a trading strategy where a trader borrows shares or securities and sells them in the market with the expectation that the price will decline. If the price does indeed drop, the trader can buy back the shares at a lower price, return the borrowed shares to the lender, and pocket the difference as profit.To "cover" a short positi When a trader says he or she is going to "cover," it typically refers to the act of closing out a short position in a security, stock, or forex position. Short selling is a trading strategy where a trader borrows shares or securities and sells them in the market with the expectation that the price will decline. If the price does indeed drop, the trader can buy back the shares at a lower price, return the borrowed shares to the lender, and pocket the difference as profit.To "cover" a short positi Read this Term 2.68X vs 6 month average of 2.66X
• Directs 19.87% versus 6 month average of 22.0%
• Indirects 61.2% versus a 6 month average of 58.3%
• Dealers 18.93% versus a 6 month average of 19.7%

Auction Grade: C

A small tail with the bid to cover around the 6 month average. Direct bidders (domestic buyers) were light but international bidders (indirects) made up for the shortfall from US buyers.

Nothing to right home about, but with yields down sharply today, they were still able to place the auction without much trouble.