- High Yield: 4.169% %, prev. 4.105%
- WI level at the time of the auction 4.177%
- Tail: -0.8 bps, Previous -1.1bps, six-auction avg. 0.5bps
- Bid-to-Cover: 2.58X, Previous 2.67x, six-auction avg. 2.66x
- Dealers: 15.71%, Previous 17.9%, six-auction avg. 18.8%
- Directs: 18.34%, Previous 16.8%, six-auction avg. 19.6%
- Indirects: 65.95% Previous 65.3%, six-auction avg. 61.6%
Auction grade: B
Highlights. The first coupon auction of the week for the U.S. Treasury is the three year note. Demand was solid with a -0.8 basis point tail. The bid to cover was a bit late compared to the six month average (2.58x versus 2.66x). The strongest demand was from international investors who took down 65.95%, higher than the 61.6% six month average. The demand from the direct bidders was marginally lighter than the average.
A solid first auction despite the declines in yields today.
