US treasury sells $16 million of 20 year bond the high yield of 4.680%

US treasury sell $16 billion of 20 bonds a high yield of 4.68%:

• High yield 4.68%
• WI level at the time of the auction 4.65%.
• Tail 3.0 basis points versus the six-month averages 0.1 basis points
• Directs (domestic buyers) 7.9% versus six with average of 17.2%
• Indirects 69.5% versus six-month average of 71.6%
• Dealers 22.6% vs six with average of 11.2%

Auction Grade: F

There are no redeeming qualities of the auction with low domestic demand, below average international demand, a tail of 3.0 basis points, well above the 0.1 bp average over the last 6 months. The Dealers are caught holding the bag and needed to distribute the balance.