- WI level at the time of the auction: 4.592%
- High Yield: 4.595%
- Previous: 4.499%
- Six-auction average: 4.055%
- Tail: -0.3bps
- Previous: 0.9bps
- Six-auction average: -0.2bps
- Bid-to-Cover: 2.74X
- Previous: 2.56x
- Six-auction average: 2.64x
- Dealers: 9.27%
- Previous: 11.4%
- Six-auction average: 10.7%
- Directs: 25.36%
- Previous: 20.2%
- Six-auction average: 19.7%
- Indirects: 65.36%
- Previous: 68.4%
- Six-auction average: 69.7%
Auction Grade: A-
Highlights: The 20-year auction was met with strong domestic demand. The direct bidders account for 25.36% which was well above the 19.7% average over the last 6 auctions. Indirect (a measure of international demand) were light however with international investors taking only 65.36% versus the 6-month average of 69.7%. The bid cover was strong at 2.74X well above the 6 month average of 2.64X. There was a -0.3 basis point tail which compares favorably to the average of -0.2 basis points.
The yield wasn’t markedly higher than the previous auction (about 10 basis points) and the 6 month average (about 54 basis points).
The only bad was the indirect but they were simply outbid by domestic investors today.
This article was originally published by Forexlive.com. Read the original article here.