- High yield at 3.960%
- WI level at the time of the auction 3.929%
- Tail +3.1 basis points versus six month average of 0.1 basis points
- Bid to Cover 2.32X vs six month average of 2.52X
- Dealers 17.88% vs six month average of 15.5%
- Directs 15.9% vs six month average of 17.1%
- Indirects 66.2% versus six month average of 67.5%
AUCTION GRADE: D-
Yuck. The 10 year note auction was not good. The tail of 3.1 basis points. The Bid to cover was light. The Dealers were saddled with a larger than average. The domestic and international demand was weaker than average.
The only reason it is not an F is there have probably been worse but this was barely above a failing grade.
Stocks have moved a bit lower on the auction results. Yields are higher.
This article was written by Greg Michalowski at www.forexlive.com.
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