US treasury auctions off $46 billion of 5 year notes at a high yield of 2.86%

• High yield 2.86%
• WI level 2.87%
• Tail -1.0 basis point vs six-month average of +0.4 basis points
• Bid to cover 2.46X vs. the six-month average of 2.44X
• Dealers 16.81% vs. six-month average of 17.7%
• Directs 16.81% vs. the six-month average of 19.0%
• Indirects 66.37% vs. six-month average of 63.4%

Auction grade: B+/A-

Strong international demand made up for somewhat weak domestic demand. The auction traded through the WI level at the time of the auction by 1 basis point indicative of solid demand. The Dealers were saddled with less than average. The Bid to cover was near the 6 month average.

International buyers came to the rescue. Domestic buyers were less enthusiastic but overall, a solid auction.

/inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term