The WI was trading at 1.04% at the time of the auction
- High yield 1.05% versus WI level of 1.04%. The tail is +1 basis point
- Bid to cover 2.23x versus six month average of 2.27X
- Dealers 22.18%, versus six month average of 24.1%
- Directs 19.45% versus six month average of 19.8%
- Indirects 58.3% versus six month average of 56.0%
Highlights and low lights of the auction:
- The auction required a one basis point tail above the WI level to attract buyers
- The bid to cover was slightly lower than the six month average despite the higher yield
- Indirects took more than what they typically do. Indirects our a proxy for overseas bidders
- Domestic Direct bidders came in close to the 6-month average
- The dealers were saddled with less than normal thanks to the overseas demand
Overall a grade of D to D+.
