US treasury auctions off $40 billion of 3 year notes at a high yield of 4.318%

US treasury auctions off $40 billion of 3 year notes at a high yield of 4.318%

• 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 4.318%
• WI level 4.31%
• Tail 0.8 basis points vs. six-month average of 0.2 basis points
• Bid to cover 2.57X vs. six-month average of 2.49X
• Directs 19.55% vs. six-month average of 19.6%
• Indirects 53.4% vs. six-month average of 57.5%
• Dealers 27.05% vs. six-month average of 22.9%

Not a great auction from the treasury. Foreign buyers were much less than expectations. The dealers were saddled with 27% while above the average of around 23%. The bid to cover was not that bad vs. the average but there was a higher than expected tail of 0.8 basis points vs. 0.2 basis points average over the last 6 months.

Auction grade: D+/C-