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Auction Grade: D
The bad:
The 3-year note auction had a positive tail of 0.7 basis points which was higher than a 0.0 basis point average. The culprit was very low international demand. That came in at 56.87% versus six-month averages 66.1%. The domestic demand was higher near 24% versus 18.1%, but the international demand is always larger and more important.
As a result, the dealers were saddled with a larger than the average amount of the auction to distribute at 19.17%.
This article was written by Greg Michalowski at www.forexlive.com.
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