U.S. Treasury auctions off $43 billion of 5 year notes at a high yield of 4.109%

• 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 4.109%
• WI level at the time of the auction 4.106%
• Tail 0.3 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 2.48X versus six-month average of 2.42X
• Directs (a measure of domestic demand) 19.03% versus six-month average of 17.5%
• Indirects (a measure of international demand) 69.95% versus six-month average of 65.9%
• Dealers (they take the rest) 11.02% versus six-month average of 16.6%

Auction grade: B

Highlights and lowlights:

The 5 year note auction had a small tail of 0.3 basis points. The bid to cover was close enough to the six-month average. What was decent is that the domestic and international demand was both above their six-month averages. That lowered the lift for the dealers. They only had to take 11.02% versus what is normally 16.6%

So although the auction wasn't stellar, it still was congruent with steady to above average investor demand at the higher current yields