The US Treasury has auctioned $58B of 3 year notes.
- Wi level at the time of the auction:4.116%
- High Yield: 4.117%
- Bid to cover:2.58X vs 6-month average of 2.56X
- Tail 0.1 bps vs the 6 month average of 0.0 bps
- Directs (domestic buyers) 20.7% vs 6 month average of 17.1%
- Indirect (international buyers) 64.2% vs the 6-month average of 66.4%
- Dealers 15.1% vs 6-month average of 16.6%
AUCTION Grade: C
The auction came in near the screws vs the WI level of 4.116%. THe yield was just a hair higher at 4.117%. THe Bid to cover was just above its 6-month average. The domestic buyers were larger than normal. The international buyers were a less than average. The Dealers overall were left with a touch less than average.
Overall an average grade for the first of three auctions.
Looking at the yield curve currently:
- 2-year 4.163%, +3.7 bps
- 5-year 4.109%, five year+3.9 bps
- 10 year 4.236%, +3.7 bps
- 30 year 4.419%, +2.9 bps
Major US stock indices are mixed/little changed:
- Dow -0.06%
- S&P -0.06%
- Nasdaq, +0.03%aq