US treasury auctions off $44 billion of 3 year notes at a high yield of 2.927%

• 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 2.927%
• WI level at the time of auction 2.917%
• Tail 1.0 basis points vs. a six-month average or 0.0 basis points
• Bid to cover 2.45X vs. six-month average of 2.47X
• Directs 23.57% vs. six-month average of 16.5%
• Indirects 51.51% vs. six-month average of 59.0%
• Dealers 24.91% vs six-month average of 24.8%

Auction grade: D+

• The tail 1 basis point is higher than the six-month average of 0.0 basis points
• Directs – a measure of domestic demand - was fairly high at 23.57% vs. six-month average 16.5%
• Indirects – a measure of international demand – was poor at 51.51% vs. the six-month average of 59.0%
• The dealers took just above the six-month average

The auction results were average to below average for most of the majors with the exception of the domestic demand. International demand which accounts for the largest buyers of US treasuries was very weak. Dealers got near the average thanks to the domestic demand but that came as a result of a yield concession of +1 basis point (investors needed a basis point more to buy the issue) him him him him