- High-yield 4.109%
- WI level at the time of the auction 4.106%
- Tail 0.3 basis points
- Bid to cover 2.48X versus six-month average of 2.42X
- Directs (a measure of domestic demand) 19.03% versus six-month average of 17.5%
- Indirects (a measure of international demand) 69.95% versus six-month average of 65.9%
- Dealers (they take the rest) 11.02% versus six-month average of 16.6%
Auction grade: B
Highlights and lowlights:
The 5 year note auction had a small tail of 0.3 basis points. The bid to cover was close enough to the six-month average. What was decent is that the domestic and international demand was both above their six-month averages. That lowered the lift for the dealers. They only had to take 11.02% versus what is normally 16.6%
So although the auction wasn't stellar, it still was congruent with steady to above average investor demand at the higher current yields
