US treasury auctions off $40B of 10 year at high yield of 3.613%

The US treasury auctioned off $40B of 10 year bonds:

• 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 3.613%
• WI level at the time of the auction 3.643%
• Tail -3 BPS. Six-month average of -0.5 basis points
• Bid Bid In a market, a bid is a price at which a buyer is willing to purchase a specific security, such as a currency, stock or bond. It is the highest price that a buyer is willing to pay for a security. Bids are typically made by market participants such as investors and traders, and are usually entered into an electronic order book or trading platform.When a market participant is looking to buy a security, they will typically place a bid at a certain price. If there are multiple buyers looking to pur In a market, a bid is a price at which a buyer is willing to purchase a specific security, such as a currency, stock or bond. It is the highest price that a buyer is willing to pay for a security. Bids are typically made by market participants such as investors and traders, and are usually entered into an electronic order book or trading platform.When a market participant is looking to buy a security, they will typically place a bid at a certain price. If there are multiple buyers looking to pur Read this Term to cover 2.66X vs six-month average of 2.39X
• Directs (a measure of domestic demand) 15.19% versus 18.6% six-month average.
• Indirects 79.45% vs six-month average of 62.9%
• Dealers 5.36% vs 18.5% six-month average

Huge demand from international buyers after they took the day off yesterday for the three year note auction. The bid to cover was well above the six month average. The tail of -3.0 basis points is indicative of strong demand. Domestic demand as represented by the direct bids was less than average but they keep on getting out bid by international traders looking for the pickup in yield and perhaps the expectations at the US is closer to the end of the tightening cycle

Auction grade: A