High yield: 4.452%WI level at the time of the auction: 4.480%Tail -2.8 basis points vs six month average of 0.1 basis pointsBid to cover: 2.74X versus a six month average of 2.6XDirects 16.35% vs six-month average of 18.9%Indirects 77.89% versus six-month average of 67.8%Dealers 5.77% vs six at average of 13.3%
Auction Grade: A
The US treasury auctioned off $13 billion of 20 year bonds with out a hitch:
The tail was -2.8 basis points, the bid to cover was much stronger than the 6-month average. The demand from international buyers was over 10% higher than normal. The domestic demand was a bit less but they had to compete with the strong international buyers. Dealers were saddled with much less then average.
Yields remained lower but still off the lows for the day:
2-year yield 4.705%, -5.5 basis points5-year yield 4.236%, -6.4 basis points10 year yield 4.220%, -5.8 basis points30-year yield 4.363%, -4.7 basis points
This article was written by Greg Michalowski at www.forexlive.com.
