The US treasury auctioned off a $12 billion of 20 year bonds. The details of the auction results compared to the six-month averages shows:
- High-yield 4.036%
- WI level at the time of the auction 4.035%
- Tail 0.1 basis points versus the 6 month average of -1.1 basis points
- Bid to cover 2.68X versus the six-month average of 2.71X.
- Directs (a measure of domestic demand) 21.7% versus the six-month average of 18.5%
- Indirects (a measure of international demand) 68.8% versus the six-month average of 71.8%
- Dealers 9.6% versus the six-month average of 9.7%
Overall, domestic demand was strong. International demand was weak. Bid the cover was near the average. Tail was higher than the average. Auction grade: C-