- US treasury sells $12 billion of 20 year bonds at a high yield of 3.820%
- WI 3.833%
- Tail -1.3 BPs. Six-month average of -1.2 basis points
- bid to cover 2.65x vs 6 month average of 2.65X
- dealers 8.1% vs. six-month average 11.1%
- Direct 16.6% vs. six-month average of 18.5%
- Indirects 75.3% vs. six-month average of 70.4%
Auction grade:B
The tail was impressive at -1.3% but only as good as the average. The bid to cover was average. Indirects (a measure of international demand) was very strong. However the domestic demand was weaker than the six-month average.
The auction is a solid B or maybe a B+.
/Inflation
