- High-yield
- WI level at the time of the auction 4.116%
- tail -1.1 basis points versus 6-month average of 0.4 basis points
- Bid to cover 2.67X vs 6-month average of 2.70X
- Dealers 17.9% versus 6-month average of 17.7%
- Directs 16.8% versus 6-month average of 20.1%
- Indirect 65.3% versus 6-month average of 62.3%
Highlights:
The three-year note auction was much better than last month when the tail was 1.7 basis points. For this auction, the tail came in at -1.1 basis points. The baby cover was close to the six-month average. Although domestic demand was light at 16.8 versus 20.1 for the six-month average, international demand was strong at 65.3% versus 62.3% six-month average. Last month the international demand was a very weak 52.1%.
Auction Grade: B
The 2-year yield is at 4.364% +1.9 basis points. The 10 year yield is at 4.007% +0.6 basis points.
Dow Industrial Average is still down -175 points or -0.47%. The S&P index is still lower by -4.6 points or -0.10%, but the Nasdaq index is up 31.36 points or 0.21%