• High yield of 2.210%
  • WI level at time of auction 2.225%
  • Tail -1.5 basis points vs 6 month average of 1.2 bps
  • Directs 17.0%vs six month average of 18.8%
  • Indirects 66.2% vs six month average of 62.8%
  • Dealers 16.8% vs six month average of 18.4%

Auction Grade: A-

  • The 20 year auctions have not been well supported with an average of 1.2 basis point tail. Today, the higher yields led to a -1.5 basis point tail
  • Demand from international market was the catalyst. The yield spreads between domestic US and European yields remain positive
  • The domestic demand was less than the average
  • Dealers were saddled with less than normal as a result of the international demand

Santelli on CNBC gives the auction an A.