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High yield: 5.618%
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WI level at the time of the auction: 5.617%
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Tail: 0.1 basis point vs the average of -0.1 basis point
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Bid to cover: 2.54X vs the average of 2.41X
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Directs: 20.89% vs the average of 20.6%
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Indirects: 72.32% vs the average of 69.1%
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Dealers: 6.79% vs the average of 10.3%
Auction grade: B
Overall, a solid auction. The high yield came in slightly above the WI level, producing a small tail instead of the average stop-through. However, the demand measures were stronger. Bid to cover exceeded its average, indirect demand was above average, and direct participation was marginally higher. Dealers were left with considerably less supply than usual. The small tail takes a little shine off the result, but the stronger demand supports an above-average grade.
This article was written by Greg Michalowski at investinglive.com.