The U.S. Treasury sold $58 billion of 3 year notes:
- High yield
- WI level at the time of the auction 3.492%
- tail -0.7 basis points versus 6 month average up +0.7 basis points
- bid to cover 2.73X versus 6 month average of 2.55X
- Dealers 8.373% versus 6 month average of 15.9%
- Directs 17.4% versus 6 month average of 21.9%
- Indirect 74.24% versus 6 month average of 62.1%
Auction grade:A
The only negative nuance from the auction is that domestic demand was lower than the six-month average. However, international demand was much stronger than the six-month average and if the goal is to sell the issue, they sold it with overall strong demand. The tail was negative at -0.7 basis points (versus 6 month average of +0.7 basis points). The bid to cover was higher than the six-month average at 2.73 versus 2.55 average.
