The U.S. Treasury sells $69 billion of two-year notes:
- High yield 3.786%
- WI level at the time of the auction 3.787%
- Tail-0.1 basis points versus six-month average of -0.3 basis points
- Bid-to-Cover 2.58X versus six-month average of 2.62X
- Directs 26.3% versus six six-month average of 17.6%
- Indirect 60.5% versus six-month average of 71.3%
- Dealers 13.2% versus six-month average of 11.1%
Auction Grade: C-
The domestic direct bidders were the bright spot, along with a modest tail of -0.1 basis points. However, international buyers were much less than the six-month average, and dealers were saddled with more than the six with the average. The bid to cover was close to the average
