High yield 4.659%WI level at the time of the auction: 4.655%Tail 0.4 basis points versus six-month average of 0.5 basis pointsBid to cover 2.39 Xversus six-month average of 2.41XDirects 19.25% versus six-month average of 17.9%Indirects 65.74% versus six-month average of 65.4%Dealers 15.02 % versus six-month average of 16.7%
Auction Grade: C+
Domestic demand was stronger than average. International demand was on par with the average. Bid to cover was near the six-month average. Although there was a positive tail of 0.4 basis points, it also is near the average over the last 6-months.
So overall, it is above average, but not by much.
PS: the $70 billion was a record amount auction for that issue. Tomorrow the coupon auctions finish for the week with the sale of $49 billion of the 7-year notes.
This article was written by Greg Michalowski at www.forexlive.com.