- High yield 4.027%
- WI level at the time of auction 4.016%
- Tail 1.1 basis points vs. six-month average of -0.4%
- bid to cover 2.43X vs six-month average of 2.57X
- Directs 22.72% vs. six-month average of 19.1%
- Indirects 63.17% vs. six-month average of 69.0%
- Dealers 14.1% vs. six-month average of 11.9%
Auction grade: D
The only positive was that the domestic demand (direct bids) was higher than the six-month average at 22.72% vs. 19.1%. Other than that, the details of the auction compared to the 6 month averages were all disappointing.
- Positive tail
- lower bid to cover
- lowered international demand through the Indirects
- Dealers were saddled with more of the auction vs the average
The 2 year and 7 year were duds this week led by lower international demand.
The 5 year auction was the best, and led by stronger international demand.