U.S. Treasury sells $13 billion of 20 year bonds at a high yield of 4.506%

• High-yield 4.506%
• WI level at the time of the auction 4.518%
• Tail -1.2 basis points versus 6 month average of -0.2 basis points.
• Bid to cover 2.73X versus 6 month average of 2.64X
• Directs 26.3% versus 6 month average of 20.4%
• Indirects 63.6% versus 6 month average of 66.5%
• Dealers 10% vs 6 month average of 13.1%.

Auction Grade: A

An off the run issue, yet the demand was strong. The tail -1.2 basis points was better than the -0.2 basis point average. THe Bid to cover was above the six-month average. The buyers were domestic buyers.IInternational buyers were a bit later than the six-month average, but the dealers were still saddled with only 10% which was well below the 13.1% average..

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