U.S. Treasury auctioned off five year notes

  • high yield 1.157%
  • WI yield at the time of auction 1.182%
  • Tail -2.5 basis points
  • Bid to cover 2.55X versus six month average of 2.37X
  • Directs 17.37% versus six month average of 17.7%
  • Indirects 64.78% versus six month average of 59.2%
  • Dealers 17.85% versus six month average of 23.2%

highlights

  • The tail of -2.5 basis points is certainly indicative of strong demand
  • The Bid to Cover is also better than average
  • The demand came from the international in direct bidders. They took 64.78% versus 59.2% average
  • The Directs or domestic bidders were slightly lower than the six month average.
  • Dealers were saddled with less than the average due to the international demand.

Overall grade: A-