U.S. Treasury sells $70 billion of 5 year notes at a high yield of 3.724%

Forex Short News
  • High yield 3.724%
  • WI level at the time of the auction 3.717%
  • Tail 0.7 basis points versus 6 month average of -0.1 basis points
  • Bid to cover 2.36X versus 6 month average of 2.37X
  • Directs 30.74%versus 6 month average of 19.4%
  • Indirects 60.5% versus 6 month average of 69.3%
  • Dealers 8.8% versus 6 month average of 11.2%

Auction grade:B-

I give the 5 year auction a grade of B-. The tail was high at 0.7 basis points which was not that great. However, the Bid to cover was average, Domestic buyers were very high at 30.74% vs 19.4%. The domestic buyers outbid International buyers who bought less at 60.5%.

Overall, the dealers were saddle with less than average.

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