US treasury auctions off $40 billion of 3 year notes at a high yield of 4.318% | Forexlive
US treasury auctions off $40 billion of 3 year notes at a high yield of 4.318%
- High yield 4.318%
- WI level 4.31%
- Tail 0.8 basis points vs. six-month average of 0.2 basis points
- Bid to cover 2.57X vs. six-month average of 2.49X
- Directs 19.55% vs. six-month average of 19.6%
- Indirects 53.4% vs. six-month average of 57.5%
- Dealers 27.05% vs. six-month average of 22.9%
Not a great auction from the treasury. Foreign buyers were much less than expectations. The dealers were saddled with 27% while above the average of around 23%. The bid to cover was not that bad vs. the average but there was a higher than expected tail of 0.8 basis points vs. 0.2 basis points average over the last 6 months.
Auction grade: D+/C-