US treasury sells $70 billion of 5-year notes at a high yield of 4.910%

Forex Short News
  • High yield 4.910%
  • WI level at the time of the auction 4.095%
  • Tail +0.5 basis points versus six-month average of -0.1 basis points
  • Bid to cover 2.33X versus six-month average of 2.40X
  • Directs (domestic demand) 10.97% versus six-month average of 18.9%
  • Indirects (international demand) 75.8% versus six-month average of 69.3%
  • Dealers 13.2% versus six-month average of 11.9%

A little good, but more bad.

The good is the international demand was strong at 75.8%

The not so good is the there was a modest positive tail. The Bid to cover was less than the average. The domestic demand was not great at all (which may be a flow back into stocks):

Auction grade: C

This article was written by Greg Michalowski at www.forexlive.com.