- High yield 3.095%
- WI level 3.125%
- Tail -3.0 BPS
- bid to cover 2.8x versus six month average of 2.48X
- Directs 15.3% versus six month average of 20.6%
- Indirects 75.9% versus six month average of 63.1%
- Dealers 8.7% vs six month average of 16.3%
Auction Grade: A
Highlights:
The US auction of $16 billion of 20 year bonds went off with strong demand. The international bid was massive with 75.9% (a record) compared to a six month average of 63.1%. Domestic demand (indirects) was later at 15.3% versus 20.6%, but it seems there were outbid by the international demand.
The tail was a impressive -3 basis points versus the WI level indicative of strong demand.
The bid the cover was also massive at 2.8x vs the six month average of 2.48x
There was nothing wrong with this auction as perhaps flight to safety and yield spreads between foreign countries and US yields remain positive.