US treasury sells $13B of 20 year bonds at a high yield of 4.686%

• High yield 4.686%
• WI level at the time of the auction: 4.671%

Details

• Tail: 1.5 bps vs 6-month average 0.6bps
• Bid-to-Cover: 2.50X vs 6-month average 2.57x
• Dealers: 17.9% vs 6-month average 13.3%
• Directs ( a measure of domestic demand): 20.1% vs 6-month average 15.3%
• Indirects (a measure of international demand): 62.0% vs 6-month average 71.4%

Auction Grade: D-

The auction had a positive tail of 1.5 bps which is comfortably above the average. The Bid to cover was lower than average with the dealers taking more than the average. The international demand was week at only 62% but the domestic demand was strong.

Overall, a below average auction. So not a C and with the international demand very week, I give it a grade of D-

Note the 20 year is not a issue that is in high demand just generally but it was still worse than other auctions. .