U.S. Treasury auctioned off $56 billion of three year notes at a high yield of 0.750%

Technical Analysis

WI level at the time of the auction was 0.740%

  • High yield 0.750
  • WI level 0.740%
  • Tail 1.0 basic point
  • Bid to cover 2.33X vs six month average of 2.44X
  • Dealers 24.3% vs six month average of 29.3%
  • Directs 18.04% vs six month average of 18.5%
  • Indirects 57.6% vs six month average of 52.2%

The auction of three year notes was met with so-so demand. The high yield came in one basis point higher than the WI level at the time of the auction, but dealers were saddled with less than the six month average as international demand (indirects) was higher than expectations.  The bid to cover – a measure of overall demand – was on the light side at 2.33x vs 2.44x average over the las last six months

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