US treasury auctions off $42 billion of tenure notes at a high yield of 4.342%

• High yield 4.342%
• WI yield before the auction 4.354%
• Tail -1.2 basis points vs six-month average of 0.7 basis points
• Bid to cover 2.60x versus the six-month average of 2.59X
• Direct 19.88% vs the six-month average of 16.8%
• Indirects 71.2% vs six-month average of 70.0%
• Dealers 8.93% versus the six-month average of 13.2%

AUCTION GRADE: A

Domestic buyers were higher than the average. International buyers are also higher than the average. The dealers therefore were saddled with less than average.

The US 10 year yield is now trading near loss for the day at 4.321% down 2.1 basis points

This article was written by Greg Michalowski at www.forexlive.com.