The US treasury auctioned off $22B of 30 year bonds. The folllowing are the results along with the resuilts of the major components compared to the 6 month averages:
High yield 4.535%WI level at the time of the auction 4.523%Tail 1.2 bps vs 0.2 basis points aveeageBid to cover 2.39X vs 2.44X averageDirects (a measure of domestic demand) 19.1% vs 17.8%. averageIndirects (a measure of international demand) 66.5% vs 67.7%.averageDealers 14.4% vs 14.5% average
AUCTION GRADE:C-
There was a positive tail of 1.2bps above 0.2bp average. The Bid to cover was a touch below the average. The good is that the domestic demand was a touch higher than normal. The international demand was a touch less than average, and the dealer takedown was around the average.
Yields are modestly higher with the:
2-year 4.169% to 4.172%10-year 4.300% to 4.310%30-year 4.523% to 4.536%
This article was written by Greg Michalowski at www.forexlive.com.
