• High-yield 4.405% versus 4.403% last month
  • WI at the time of the auction 4.383%
  • Tail +2.2 basis points vs six-month average of -0.9 basis points
  • Bid to Cover 2.30X vs six month average of 2.42X
  • Dealers 15.88% vs six-month average of 14.9%
  • Directs 23.36% vs six-month average of 17.5%
  • Indirects 60.76% vs six-month average of 67.6%

AUCTION GRADE: D+

The 30-year bond auction was mixed but mostly worse than the six-month average of the components

The Bad:

  • Tail was 2.2 basis points above the WI level at the time of the auction
  • Bid to cover was less than the 6 -month average
  • international demand (indirect) was much lower than the six month average

The Good:

  • Domestic demand was much stronger than the six-month average

Overall, the grade has to be less than the average but the domestic demand saves the day.

Meanwhile, stocks remain under pressure with the S&P and NASDAQ and a fairing the worst. The S&P is down -51 points or -0.91%. The NASDAQ index is down -345 points or -1.86%.

The Dow industrial average is still holding onto gains of 20 points or 0.05% and the Russell 2000 is soaring by 67.16 points or 3.27%.

There is a flow of funds out of the high flying tech stocks including:

  • Meta Platforms -3.86%
  • Amazon -2.70%
  • Nvidia -4.84%
  • Google -2.77%
  • Apple -2.17%
  • Microsoft -2.39%
  • Tesla -6.40%