WI yield at option 2.125%
- WI at auction 2.125%
- High yield 2.144%. Tail 1.9 bps
- Bid to cover 2.30x vs 6-month average of 2.53X
- Dealer 30.45% vs 17.2% average over 6 months
- lowest yield since September 2017
- Directs take 11.3%
- Indirects take 58.3%
This auction was not good.
The tail was nearly 2 bps from the final WI level. The Bid to cover was light relative to the 6 month average and primary dealers are stuck with an unusually high amount of the issue.
The issue is trading up at 2.145-2.135% in after auction market.
