That is a above the WI level of 1.853%
- high yield 1.869% versus WI level of 1.853%
- Bid to cover 2.45x vs six-month average of 2.40x
- dealers took 28.7% vs six-month average of 26.3%
- indirects 55.2% versus six-month average of 59.7%
- direct 16.1% versus six-month average of 13.9%
overall not a great auction. The tail was 1.6 basis points which is above the six-month average of 0.3 basis points. The bid to cover was a little higher than the average. Dealers also took more than the average.
I would give it a D+- as a grade (Rick Santilli gave it a C-)
The debt market has seen yields move higher today after earlier declines. The 10 year yield reached a low of 1.7032% soon after the bombings from Iran. The high yield is currently being printed now at 1.8668% after the lackluster auction.
Looking at the daily chart of the 10 year yield, the low yield today did bounce off of a pretty solid trendline. Bullish. The key level on the topside would be the high from November at 1.971% and the falling 200 day moving average at 1.9820%. Moving above that area would be a boost technically for yields in the US.
