High Yield: %, six-auction average 4.390%Tail: -0.8 bps, six-auction average -0.1bpsBid-to-Cover: 2.67x, six-auction average 2.57xDealers: 14.8%, six-auction average 17.0%Directs: 21.3.%, six-auction average 17.8%Indirects: 64.0%, six-auction average 65.2%
AUCTION GRADE: A-
The coupon auction for the week has gotten off to a strong start with the three year note auction attracting solid demand. The best bid was from domestic buyers as they took down 21.3%, much higher than the 17.8% six month average. International demand was just below the six month average.
The big to cover was above average. The Tail was negative by a greater than average -0.8 basis point.
The only downside was the international demand was just a touch lighter than average. That is good enough for a grade of A-.
The auction results, are pushing yields off their highs and as such, the USDJPY has also moved lower and back below the swing area between 161.27 and 161.39.
This article was written by Greg Michalowski at www.forexlive.com.
