US treasury auctions of $35 billion of 7 year notes at a high yield of 4.062% | Forexlive
The US treasury auctioned off $35 million of 7 your notes:
- High-yield 4.062%
- WI level at the time of the auction 4.047%
- Tail 1.5 basis points versus six-month average of -0.2 basis points
- Bid to cover 2.49X versus six-month average of 2.62X
- Directs (a measure of domestic demand) 20.8% versus six-month average of 18.8%
- Indirects (a measure of international demand) 65.5% versus six-month average of 68.1%
- Dealers (they take the rest) 13.71% versus six-month average of 13.1%
Auction Grade: C-
The tail came in 1.5 basis points above the WI level. That was well above the -0.2 basis point average. The bid to cover was lower than the average. The directs (a measure of domestic demand) was above the average, but international demand was below average.
The dealers were saddled with a bit more than the average.
It is below average and close to a D-. The saving grace was that domestic demand was higher, but international players stayed on the sidelines instead.