The U.S. Treasury sold $69 billion of two-year notes at a high yield of
- WI level at the time of the auction 4.192%
- Tail -0.3 basis points versus six auction average of 0.1 basis points
- Bid to cover ratio 2.64Xversus average of 2.61X
- Directs 34.3% versus average of 29.1%
- Indirects 55.5% versus average of 57.8%
- Dealers 10.2% vs average of 13.0%
AUCTION GRADE: B+
The two year is typically a well received auction with lots of demand. Today’s auction was certainly better-than-average thanks to strong demand from domestic US buyers.
Today’s auction came in the tail of -0.3 basis points. The bid to cover was near the average that the domestic demand was strong and 34.3% will have a six month average while the international demand was just below the norm. Because of domestic demand, the dealers were left with less than the average.
This article was written by Greg Michalowski at investinglive.com.