- High-yield 4.553%
- WI level at the time of the option 4.540%
- Tail: +1.3 basis points versus six average of. -0.1 BPs
- Bid-to-cover: 2.3X versus a six month average of 2.41x
- Dealers: 19.52% versus a six month average of 16.0%
- Directs: 15.44% versus the six-month average of 17.9%
- Indirects: 65.04% versus a six month average of 66.1%
The tail was rather larger 1.3 basis points. The bid to cover was also disappointing. Directs - a measure of domestic demand - was lighter than the month average. The international demand was also lower than average.
Two auctions today and two auctions with sluggish demand.
Auction grade: D+ (which is probably generous)
Yields are now higher with the:
- 5-year at 4.568% up 3.8 basis points
- 10-year yield 4.520%, +4.7 basis points
- 30-year yield 4.636%, +5.9 basis points
US stocks are dipping a bit but the NASDAQ index is still up 85 points or 0.50%. The Dow Industrial Average is down -229 points however and the S&P indexes trading back toward unchanged.
