• High Yield: 3.972%

  • WI level at the time of the auction: 3.968%

  • Tail: 0.4 bps vs. 6- month avg. 0.5bps. The difference between the high yield and the when-issued yield (pre-auction market rate. A negative tail is indication of strong bidding. A positive tail implies less demand

  • Bid-to-Cover: 2.52X vs 6-month avg. 2.62x. Total bids received divided by the amount of debt offered. A higher number is an indication of strong demand

  • Dealer Take: 15.19% vs 6-month avg. 15.1%.Primary dealers (big banks) who are obligated to bid at Treasury auctions. If the banks take more than the average, it indicates less investor demand.

  • Directs: 18.03% vs 6 month average of 18.7%. A higher number is indicative of strong domestic demand, while a lower number is weaker demand. .

  • Indirects: 66.78% vs 6-month avg. 66.2%.Often seen as foreign central banks and international institutions.A higher number is indicative of strong domestic demand, while a lower number is weaker demand.

AUCTION GRADE: C

The details showed a positive tail with Bid to cover lower than the average. The domestic buyers was close to the average and international buyers were near the average as well.

More ahead:

  • 10-year reopening tomorrow

  • 30-year reopening Thursday

Source: Forex Live