• High yield 3.030%
  • WI level at the time of the auction 3.018%
  • tail 1.2 basis points vs. six-month average of 0.5 basis points
  • bid to cover 2.41X vs. six-month average of 2.50X
  • directs 19.37% vs. six-month average of 17.3%
  • Indirects 63.59% vs. six-month average of 69.1%
  • dealers take 17.04% vs. six-month average of 13.5%

Auction grade: D-

  • Tail of 1.2 basis points is higher than the six-month average of 0.5 basis points as investors shun the auction
  • international demand came in much weaker than the six-month average. Yesterday the 3 year auction also had much weaker international demand
  • domestic demand was above average but came at a concession to the WI yield
  • the bid to cover was also weaker than the six-month average
  • dealers were left with an above average amount of 10 year notes to distribute after the auction