The US treasury auctions of $16 billion of 20 year bonds and a high yield of 4.830%

• High yield 4.830%
• WI level at the time of the auction 4.820%
• Tail 1.0bps vs six with average +1.2 basis points
• Bid to cover 2.43X vs six month average of 2.54X
• Directs (a measure of domestic demand) 19.5% vs six-month averages of 16.9%
• Indirects (a measure of international demand) 63.0% vs 6 month average of 67.5%
• Dealers 17.5% vs 6 month averagge of 15.6%

Auction Grade: C-

The tail was positive but it was less than the 6-month average. The Bid to cover was lower than average.

Domestic demand was stronger than average and international demand was weaker.

The dealers were saddles with more than average

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