The U.S. Treasury will auction off twenty-year bonds at the top of the hour. The auction results were compared to the six-month averages of the major components including the tail (the difference between the WI level vs the high yield), the Bid to cover (the number of bids vs the auction amount), the domestic (direct bidders) and the international participation (the indirect bidders).
The component pieces including the prior auction results, and the 6-month averages shows:
High Yield at last auction:
- Last auction: 4.542%
- Six-auction average: 4.633%
Tail:
- Last auction: -2.0 basis points
- Six-auction average: 0.2 basis points
Bid-to-Cover Ratio:
- Last auction 2.79x
- Six-auction average: 2.57x
Dealers:
- Last auction: 9.3%
- Six-auction average: 13.7%
Directs:
- Last auction: 17.2%
- Six-auction average: 18.3%
Indirects:
- Last auction: 73.5%
- Six-auction average: 68.0%
US.continue their decline ahead of the auction:
- Dow -0.35%
- S&P -0.68%
- NASDAQ -1.13%
