High Yield:3.440%
Previous: 3.81%
WI Level at the time of the auction: 3.457%
Tail: -1.7 bs
Previous: -0.2bps
Six-auction average: 0.1bps
Bid-to-Cover: 2.66X
Previous: 2.55x
Six-auction average: 2.56x
Dealers:10.45%
Previous: 15.4%
Six-auction average: 16.4%
Directs (a measure of domestic demand):11.3%
Previous: 20.3%
Six-auction average: 18.8%
Indirects (a measure of international demand):78.24%
Previous: 64.4%
Six-auction average: 64.7%
AUCTION GRADE: A
Details: The International buyers showed up and crowded out the other bidders. The international buyers took 78.24%. That was well above the 64.7% six-month average. As result, domestic buyers only to 11.3% well below the six-month average of 18.8%.
The international demand was evident from the -1.7 basis point tail. The tail is the difference between the WI level at the time of the auction and the high yield. That compares very favorably to the +0.1 basis point tail seen over the last six months.
The bid to cover was stronger as well at 2.66X vs 2.56X average.
This article was written by Greg Michalowski at www.forexlive.com.
