- High yield 3.115%
- WI level at the time of the auction 3.133%.
- Tail -1.8 bps vs. six-month average of -0.4 basis points
- Bid to cover 2.44X vs six-month average of 2.33X
- Directs 16.34% vs six-month average of 17.6%
- Indirects 73.2% vs. six-month average of 66.6%
- Dealers 10.46% vs six-month average of 15.8%
Auction Grade: A
The 30 year auction was met with strong investor demand especially from overseas buyers. The in direct bidders came in at 73.2% well above the 66.6% six-month average. That helped lead to dealers only taking 10.46%. Lower dealer buying is indication of a strong auction is a result of domestic and international demand.
The tail of -1.8 basis points is well below the 6 month average.
The Bid to cover was comfortably above the six-month average as well.
The 3 year note auction at similar demand. The 10 year auction was a dud yesterday.
The better auction has helped the stocks. The NASDAQ and S&P are trading back in positive territory with the NASDAQ index testing its 100 hour moving average at 11310.79. The NASDAQ index currently trades at 11308.25. The S&P index is back in positive territory up 3 points or 0.08% at 3822.19.
The Dow industrial average is still down by 53 points or -0.17% at 30932, but is well above its low at 30514.61.