• High Yield: 4.780% vs Previous: 5.245%
  • WI level at the time of the auction 4.79%
  • Tail: -1.0 bp vs 6-auction average: -0.7bps. Previous: -1.2bps.
  • Bid-to-Cover: 2.58 times x vs 6 month average of 2.67X. Previous: 2.59x.
  • Dealers: 9.5% versus 6 month average of 10.2%. Previous: 11.9%.
  • Directs: 16.5% versus six-month average of 19.7%. Previous: 15.2%.
  • Indirects: 74.0% versus six-month average of 70.1%. Previous: 72.9%

Auction Grade: B+

Highlights:

  • A negative tail which is good
  • Bid to cover was average
  • Domestic demand was weaker than the six-month average at 16.5%. Not so great
  • International demand at 74% was much stronger than the six-month average. Strong demand
  • Overall the dealers were left with lower than the six-month average.

Looking at the US yield curve, the two-year is up marginally but the longer and is trading near lows for the day:

  • 2-year yield 4.908%, +0.2 basis points
  • 5-year yield 4.444%, -1.1 basis points
  • 10 year 4.427%, -1.3 basis points
  • 30-year 4.572%, -2.5 basis points