The US treasury auctions off $12 billion of 20 year bonds at a high yield of 4.036%

The US treasury auctioned off a $12 billion of 20 year bonds. The details of the auction results compared to the six-month averages shows:

• High-yield 4.036%
• WI level at the time of the auction 4.035%
• Tail 0.1 basis points versus the 6 month average of -1.1 basis points
• Bid to cover 2.68X versus the six-month average of 2.71X.
• Directs (a measure of domestic demand) 21.7% versus the six-month average of 18.5%
• Indirects (a measure of international demand) 68.8% versus the six-month average of 71.8%
• Dealers 9.6% versus the six-month average of 9.7%

Overall, domestic demand was strong. International demand was weak. Bid the cover was near the average. Tail was higher than the average. Auction grade: C-