• High-yield 4.109%
  • WI level at the time of the auction 4.106%
  • Tail 0.3 basis points
  • Bid to cover 2.48X versus six-month average of 2.42X
  • Directs (a measure of domestic demand) 19.03% versus six-month average of 17.5%
  • Indirects (a measure of international demand) 69.95% versus six-month average of 65.9%
  • Dealers (they take the rest) 11.02% versus six-month average of 16.6%

Auction grade: B

Highlights and lowlights:

The 5 year note auction had a small tail of 0.3 basis points. The bid to cover was close enough to the six-month average. What was decent is that the domestic and international demand was both above their six-month averages. That lowered the lift for the dealers. They only had to take 11.02% versus what is normally 16.6%

So although the auction wasn't stellar, it still was congruent with steady to above average investor demand at the higher current yields