High Yield: 4.039%
Last month: 4.16%
Six-auction average: 4.512%
WI level at the time of the auction: 4.019%
Tail: +2.0 basis points
Last month: -0.1bps
Six-auction average: -1.3bps
Bid-to-Cover: 2.51X
Last month: 2.54x
Six-auction average: 2.68x
Dealer Participation: 18.6%
Last month: 9.7%
Six-auction average: 8.7%
Direct Bidders: 16.3%
Last month: 19.3%
Six-auction average: 17.1%
Indirect Bidders: 65.09%
Last month: 71.0%
Six-auction average: 74.2%
AUCTION GRADE: D-
All the components were less than the 6 month averages. I only give it a D- because I heard that failing grades are not given out anymore. So am feeling generous, but it was not supported by buyers.
The good news is the 20 year is not a maturity that is in demand. Hence, the amounts auctioned are much lower than the $38 or so billion for 10 and 30 year issues.
The reaction across the yield curve is somewhat modest as well.
