US treasury auctions of $24 billion of 20 year notes at a high yield of 2.12%
WI 2.137% at the time of the auction
- High yield versus a WI yield of 2.137. Tail of 1.7 basis points
- Dealers 17.53% versus six month average of 24.5%
- bid to cover 2.4x vs six month average of 2.33X
- Indirects 62.1% vs 58.0% six month average
- Directs 20.4% versus 17.5% six month average
The auction was near-perfect with a
- tail of -1.7% vs the WI auction yield of 2.137.
- The dealers were saddled with only 17.53% (vs six month average of 24.5%).
- Foreign demand was strong at 62.1% versus 58.0% average.
- The domestic demand from the Direct bid was also comfortably above the six month average