US treasury auctions off $20 billion of 30 year bonds at a high yield of 2.375%

• High yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term of 2.375%
• WI at the time of the auction, 2.399%
• Tail -2.4 basis points versus six month average up +1.1 basis point
• Bid to cover 2.46X versus six month average of 2.32X
• Directs 16.42% (a measure of domestic demand) versus six month average of 17.3%
• Indirects 71.52% (a measure of international demand) versus six month average of 65.5%
• Dealers 12.06% (dealers tend to take the balance of supply and distribute) versus six month average of 17.2%

Grade: A

Highlights:

• Strong international demand that was well above the six month average (i.e. indirects)
• The strong international demand was evident in the -2.4 basis point tail. The six month average was +1.1 basis points
• The bid the cover was higher than the six month average
• The dealer takedown was lower than the six month average
• The only small negative was that the domestic demand (directs) was lower than the six month average.

Overall however a solid auction and certainly better than the three and 10 year auctions from Tuesday and Wednesday.

Rick Santelli also gave the auction an A grade (copy cat).