• High yield 4.194%
  • Wi level at the time of the auction 4.216%
  • Tail -2.2 basis points. The six month average -0.8 basis points
  • Bid to cover 2.69X. The six month average 2.64X
  • Direct 23.64% versus the six month average of 21.4%
  • Indirects 71.52% vs the six month average of 67.6%.
  • Dealers 4.85% vs six month average of 11.0%.

Auction Details and Evaluation

MetricResult6-Month AverageCommentary
High Yield4.194%—This was 2.2 bps through the 4.216% when-issued (WI) level, a strong tail indicating robust demand.
Tail-2.2 bps-0.8 bpsSignificantly better than average, confirming strong bidding interest.
Bid-to-Cover Ratio2.69x2.64xSlightly above average, supporting solid demand.
Direct Bidders23.64%21.4%Higher than average — positive sign of domestic demand.
Indirect Bidders71.52%67.6%Strong foreign interest — another sign of a healthy auction.
Dealer Take4.85%11.0%Dealers took far less than usual, meaning real demand absorbed the supply.

Grade Justification: A

  • Why not A+? While all metrics are solid or better-than-average, the bid-to-cover was only modestly above average, not exceptional. A perfect score would typically require blowout figures across all categories.

  • Strengths: The deep tail, strong indirect and direct participation, and low dealer retention all point to very strong end-user demand — the market wanted this issuance.

Summary

This was a very strong auction with broad participation and pricing well through the WI. The only reason for not assigning a perfect "A+" is that the bid-to-cover wasn't exceptionally high — just slightly better than average. Still, an A grade reflects excellent overall execution.

Source: Forex Live