U.S. Treasury sold 58 billion of 3 year notes at a high yield of 3.614%

U.S. Treasury sold $58 billion of 3 year notes at a high yield of 3.614%.

• WI level at the time of the auction was 3.622%
• Tail -0.8 basis points versus -0.2 basis points 6 month average
• bid to cover 2.64X vs 6 month average of 2.63X
• Directs 19.0% versus 6 month average of 24.5%.
• Indirects 71.97% versus 6 month average of 62.5%
• Dealers 9.03% vs 6 month average of 13.1%

Auction Grade B+

The 3 year note auction was met with strong demand from international buyers. The domestic buyers were less than average in the bid to cover was near the average. More good news was that the tail was -0.8 basis points which was much less than the -0.2 basis point average over the last 6 months.

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