US treasury auctions off $69 billion at a high yield of 4.434%
- High yield 4.434%
- Tail -2.3 basis points vs six month average of 0.2 basis points
- Bid to cover 2.81X vs six month average of 2.58X. Best since August 2023
- Direct (a measure o domestic demand) 14.42% versus six month average of 21.0%. Weakest since Jan of 2022
- Indirects (international demand) 76.57% versus six month average of 64.3%. Highest on record.
- Dealers 9.01% versus six month average of 14.7%
AUCTION GRADE: A
The only thing bad about the auction was that the international demand outbid the domestic buyers. There was a negative tail. The bid to cover was well above the six month average.
This article was written by Greg Michalowski at www.forexlive.com.
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