The U.S. Treasury auctioned off $40 billion of 10-year notes. The key components showed:
- High Yield: 4.519%. 6-Auction Average 3.999%, Previous 4.61%
- Tail: 0.8 basis points. 6-Auction Average 0.9 basis points, Previous 1.8 basis points
- Bid-to-Cover: 2.45X. 6-Auction Average 2.49 times, Previous 2.5 times
- Dealers: 15.1%. 6-Auction Average 14.2%, Previous 18.7%
- Directs: 15.17%. 6-Auction Average 19.7%, Previous 20.9%
- Indirects: 69.73%. 6-Auction Average 66.1%, Previous 60.3%
Auction Grade: C
There was a positive tail, but relative to the last 6 months, it was a lower than the average. THe bid to cover was near the 6 month average. The international demand was strong and above its six-month average, but the domestic demand was weak and below its six-month average.
Some good. Some bad. Grade is therefore a C for average.