U.S. Treasury auctioned off $38 billion of 10 year notes at a high yield of 1.497%

WI level at the time of auction was 1.507%.

  • High yield 1.497%. WI level at the time of auction was 1.507%. Tale of -1 basis point
  • Bid to cover 2.58X.  Six month average 2.39X
  • Dealers 15.72%. Six month average 22.1%.
  • Indirects 65%. Six month average 60.8%
  • Directs 19.2%. Six month average 17.1%
Auction grade: A+
Nothing wrong with this auction.
  • Tailed by -1.0 basis point vs the WI yield at the time of auction
  • The bid the cover was well above the six month average
  • Dealers were saddled with much less than the six month average at 15.7% versus 22.1%
  • Foreign demand was strong at 65% versus 60.8% six month average
The U.S. Treasury will complete their refunding auctions for the week tomorrow when they sell $24B of 30 year bonds at 1 PM ET.