The U.S. Treasury auctioned off $22 billion and 30 year bonds. The auction results versus six month averages are the following:

  • High yield . Last month the high yield came in at 1.895%
  • WI level at the time of auction 2.072%
  • Tail 0.3 basis points vs six month average of 3.2 basis points
  • Bid to cover 2.35X vs six month average of 2.28X
  • Directs 17.08% vs six month average of 17.7%
  • Indirects 64.9% vs six month average of 63.6%
  • Dealers 17.9% vs six month average of 17.7%

Auction Grade: B

  • Small tail is ok relative to the 6 month average
  • Bid to cover is above the average. So good coverage
  • Directs, Indirects and Dealers were near on the 6 month averages.
bond auction

My grade is better than Rick Santelli (CNBC) who gave it a C-. I think he was a little harsh grading on a curve off the recent auctions.