The US treasury sold $50 billion of three year notes at high yield of 1.592%. That was at 0.3 basis points less than the WI level of 1.595%.
- Bid to cover 2.45X vs six month average of 2.43X
- directs 11.14% vs six month average of 18.0%
- indirects 68.55% versus six month average of 54.6%
- dealers 20.31% versus six month average of 27.4%
The stars of the auction were the international bidders as they crowded out the directs and the dealers by taking 68.55% which was well above the 54.6% average over the last six months.
The bid the cover was above the average but not by much
Domestic buyers (directs) were less than the average. I don't know if that was because of the strong demand by international investors or weak demand by domestic purchasers.
Dealers are saddled with less than the average as a result of the strong international demand (they tend to take the balance).
Auction grade: A-
One down. Two to go.
