- High yield: 4.908%
- WI level at the time of the auction: 4.91%
- Tail: -0.2 bps (previous: 0.3bps, six-auction average: -0.2bps)
- Bid-to-Cover: 2.7x (previous: 2.47x, six-auction average: 2.73x)
- Dealers (they take the leftovers from the domestic and international investors): 10.98% (previous: 14.6%, six-auction average: 12.0%)
- Directs (a measure of domestic demand): 18.4% (previous: 19.9%, six-auction average: 17.6%)
- Indirects (a measure of international demand): 70.62% (previous: 65.5%, six-auction average: 70.4%)
AUCTION GRADE: Compared to yesterday, an A.
The market was nervous going into the auction especially given the weak demand yesterday. However, both domestic and international demand was stronger than the 6-month average (by a little). The bid to cover was near the 6-month average. Dealers were saddled with less than normal.
If the grade was not curverd given the recent auctions, the auction grade was more like a B-/C+, but relatively, it gets a sigh of relief and better grade.
Yields have moved a little lower with:
- 5 year at 4.816% -10 basis points
- 10 year 4.872% -7.9 basis points
- 30 year 5.024% -6.8 basis points
In the stock market (not sure I can trust), the declines have been paired a bit
- Dow is down -0.61%
- S&P -1.09%
- NASDAQ index -1.76%