U.S. Treasury auctions off $43 billion of 5 year notes at a high yield of 4.109% | Forexlive

• High-yield 4.109%
• WI level at the time of the auction 4.106%
• Tail 0.3 basis points
• Bid to cover 2.48X versus six-month average of 2.42X
• Directs (a measure of domestic demand) 19.03% versus six-month average of 17.5%
• Indirects (a measure of international demand) 69.95% versus six-month average of 65.9%
• Dealers (they take the rest) 11.02% versus six-month average of 16.6%

Auction grade: B

Highlights and lowlights:

The 5 year note auction had a small tail of 0.3 basis points. The bid to cover was close enough to the six-month average. What was decent is that the domestic and international demand was both above their six-month averages. That lowered the lift for the dealers. They only had to take 11.02% versus what is normally 16.6%

So although the auction wasn’t stellar, it still was congruent with steady to above average investor demand at the higher current yields