U.S. Treasury auctions off $49 billion of 5 year notes at a high yield of 2.785%

• 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 2.785%
• WI level 2.776%
• Tail +0.9 basis points . The six month average is -0.6 basis points
• Bid to cover 2.41X. The six month average is 2.47X
• Directs 19.5%. The six month averages 17.1%
• Indirects 64.0% . The six month average is 64.0%
• Dealers 16.5%. The six month averages 18.9%

Auction grade: C+

Details:

Although the five year auction at good domestic and international demand (both direct and indirect's were higher than the six month average), the yield was also too low for their liking.

Hence the 0.9 basis point tail which is above the six month average -0.6 basis points.

The bid the cover was light in comparison to the six month average.

CNBCs Santelli gave it a grade of D+. I am a bit more lenient in my grading today.