- WI level at the time of the auction: 4.592%
- High Yield: 4.595%
- Previous: 4.499%
- Six-auction average: 4.055%
- Tail: -0.3bps
- Previous: 0.9bps
- Six-auction average: -0.2bps
- Bid-to-Cover: 2.74X
- Previous: 2.56x
- Six-auction average: 2.64x
- Dealers: 9.27%
- Previous: 11.4%
- Six-auction average: 10.7%
- Directs: 25.36%
- Previous: 20.2%
- Six-auction average: 19.7%
- Indirects: 65.36%
- Previous: 68.4%
- Six-auction average: 69.7%
Auction Grade: A-
Highlights: The 20-year auction was met with strong domestic demand. The direct bidders account for 25.36% which was well above the 19.7% average over the last 6 auctions. Indirect (a measure of international demand) were light however with international investors taking only 65.36% versus the 6-month average of 69.7%. The bid cover was strong at 2.74X well above the 6 month average of 2.64X. There was a -0.3 basis point tail which compares favorably to the average of -0.2 basis points.
The yield wasn’t markedly higher than the previous auction (about 10 basis points) and the 6 month average (about 54 basis points).
The only bad was the indirect but they were simply outbid by domestic investors today.