US treasury sells $48 billion of 5 year notes at a high yield of 2.736%

• High yield 2.736%
• WI level at the time of auction at 2.732%
• Tail 0.4 basis points vs six-month average of 0.0 basis points
• bid to cover 2.44X vs. six-month average of 2.45X
• Directs (a measure of domestic demand) 20.0% vs. six-month average of 17.4%
• Indirects (a measure of international demand) 62.9% vs. six-month average of 63.9%
• Dealers 17.0% vs. six-month average of 18.7%

Auction grade: C-

The auction traded with a positive tail which was also above the 6 month average. The bid to cover was average. The domestic demand was above average, but the international demand was less than average. There is more average to below average components to give a grade of C- (it is close to a D+).