The US treasury auctions off $43 billion of five-year notes at a high yield of 4.17%

• High yield 4.17%
• WI level at the time of the auction 4.166%
• Tail 0.4 basis points vs a six-month average of -0.7 basis points
• Bid to cover 2.60X versus six-month average of 2.54X
• Directs 22.13% versus six-month average of 17.9%.
• Indirects 64.38% versus six-month average of 70.7%.
• Dealers 13.49% versus six-month average of 11.4%.

Auction grade: D+

There was a positive tail (0.4 basis points) which is much higher than the -0.7 basis point average. The international demand was well below the 6-month average. Domestic demand was well above the 6 month average. Dealers were saddled with more of the auction overall.