U.S. Treasury auctions of $69 billion of 2-year notes at a high yield of 3.920%

• High-yield 3.920%
• WI level at the time of the auction 3.925%
• Tail -0.5 basis points versus six month average of versus six month average of -0.3 basis points
• Bid to cover 2.62X versus six month average of 2.59X
• Directs (domestic buyers) 34.4% versus six month average of 20.8%
• Indirects (international buyers) 55.33% versus six month average of 67.7%
• Dealers 10.3% versus six month average of 11.4%

Auction Grade: C+

• The tail was a little lower than average which is better.
• The Bid to cover was just above the average.
• The Domestic buying was strong while the international buying was weak.
• Dealers were saddled with less thanks to the domestic buyers.

Better than average but plain vanilla and mixed.

This article was written by Greg Michalowski at investinglive.com.