Bid to cover 2.42x vs 2.34x at the last auction
The US treasury sold $15B of 29 and 10 month bonds at 2.344%. That was higher than the 3.353% level just before the auction.
- The bid to cover was better than the last auction at 2.42x vs 2.34x at the last auction
- Primary dealers take 22.81%
- 64.4% to indirect bidders
- 12.8% to direct bidders.
This auction was better with the bid to cover better (highest since January), and the yield was lower than the WI level. The higher yield - highest since July 2014 - may have been a contributor to the better demand. Primary dealers took the smallest share since January.
That is a good auction and sure beats the 3 and 10 year note auctions that preceded it this week.
