Below are the auction results for the sale of $42 billion of 7 year notes:
- High yield 2.777%. The high yield at the last auction came in at 2.908
- WI level at the top of the auction 2.801%
- Tail -2.4 basis points vs six-month average of 0.5 basis points
- Bid to cover 2.69Xvs. six-month average of 2.37 times
- Directs 15.76% vs. six-month average of 23.0%.
- Indirects 77.9% vs. six-month average of 61.8%
- Dealers 6.38% vs. six-month average of 15.2%
Auction Grade: A+
The tail was well below the six-month average of 0.5 basis points that -2.4 basis points. The international demand was huge at 77.9% vs. six-month average of 61.8%. Domestic demand from the direct bidders was less than expected but they were outbid by the international traders. The dealers took a very small 6.38% as a result.
This article was originally published by Forexlive.com. Read the original article here.