US treasury auctions off $70 million of 5 year notes at a high yield of 4.123%

Auction details:

• High yield: 4.123%
• WI level at the time of the auction 4.133%:
• Tail -1.0 basis points vs six-month averages 0.1 basis points
• Bid to cover 2.42X vs six-month average of 2.40X
• Directs (domestic buyers) 14.5% vs six-month average of 19.2%
• Indirects (international buyers) 74.9% vs six-month averages 68.6%
• Dealers 10.6% vs six-month average of 12.3%

Auction Grade:B

The tail of -1.0 basis points shows aggressiveness mainly from international buyers. They took 6% more than the average. Domestic buyers were less than the average for the 2nd day in a row. The dealers still took a relatively light 10.6%.

Bid to cover was near the average.

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