US treasury auctions off $27 billion of 20 year bonds at high yield of 1.422%

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US treasury auctions off 27 billion year bonds

  • high yield 1.422% vs. WI 1.413%
  • bid to cover 2.27x vs. six-month average of 2.44x
  • dealers 23.49% vs. six-month average of 23.2%
  • directs 15.3% vs. six-month average of 14.2%
  • Indirects 61.2% vs. six-month average of 62.6%

overall the tail of nearly 1 basis point and the light bid to cover suggests there was some light interest in the issue. Dealers were not saddled with a large amount. The bid to cover and high yield led to the distribution.

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