- US auctions off $12B of 20 year bonds at high yield of 3.935%
- WI level was 3.948%
- Tail -1.3 bps vs 6 month avg of -0.3 bps
- Bid to cover 2.68X vs 6 month average of 2.56X
- Directs 19.0% vs 6 month average of 17.4%
- Indirects 72.3% vs 6 month average of 71.1%
- Dealers 8.7% vs 6 month average of 11.5%
Auction grade: A
Nothing wrong with the demand for that auction. A negative tail vs the WI at the time of the auction. Bid to cover above the 6 month average. Domestic (directs) and internations (indirects) both comfortably above the 6 month average. Dealers saddled with less than the average.
If there is concerns about overseas bids, this was not a problem (at least today).