WI was trading at at the time of the auction 1.324%
- High yield 1.332%
- WI level at the time of the auction 1.324%
- Bid to cover 2.24 versus six month average of 2.31x
- Directs 20.92% versus six month average of 19.8%
- Indirects 60.09% versus six month average of 58.9%
- Dealers 18.99% versus six month average of 21.3%
The seven year auction was another sloppy auction:
- tail of 0.8 basis points to the WI level
- Bid to cover was less than the 6 month average
- The Directs (domestic demand) and indirects (international demand) was higher than the six month averages but you can argue it took a higher yield to attract the demand. So blah
Grade: D
Traders are demanding higher yields as rates move higher.
This article was originally published by Forexlive.com. Read the original article here.