US treasury auctions offer $42 billion of two-year notes at a high yield of 4.30%

• High-yield 4.30%
• WI level 4.315%
• tail -1.5 basis points versus a 6-month average of -0.1 basis points
• Bid to cover 2.9X versus 6 month average of 2.67X
• Directs (a measure of domestic demand) 15.6% vs 6 month average of 21.1%
• Indirects (a measure of international demand) 68.2% vs 6-month average of 60.0%. Best since June 2009
• Dealers 16.2% vs 6-month average of 18.8%

Auction Grade: B+

The auction was saved by the international demand which was well above the 6-month average. The domestic demand was not great at 15.6% (vs 21.1%).

The bid 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 was strong at 2.90 times. The tail was also indicative of aggressive demand from international buyers. The grade would've been higher if domestic demand was higher but it was pretty disappointing.

The last auction sold at a 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 of 3.969% with a tale of +0.3 basis points and a bid to cover near the 6-month average of 2.68X