US treasury auctions $58B of 3 year notes at a high yield of 3.972%

High Yield: 3.972%
WI level at the time of the auction: 3.968%
Tail: 0.4 bps vs. 6- month avg. 0.5bps. The difference between the high yield and the when-issued yield (pre-auction market rate. A negative tail is indication of strong bidding. A positive tail implies less demand
Bid-to-Cover: 2.52X vs 6-month avg. 2.62x. Total bids received divided by the amount of debt offered. A higher number is an indication of strong demand
Dealer Take: xx.x% vs 6-month avg. 15.1%.Primary dealers (big banks) who are obligated to bid at Treasury auctions. If the banks take more than the average, it indicates less investor demand.
Directs: xx.x% vs 6-month avg. 18.7%. Domestic US buyers placing bids on their own behalf (e.g., corporations, pension funds, insurance companies). A higher number is indicative of strong domestic demand, while a lower number is weaker demand. .
Indirects: xx.x% vs 6-month avg. 66.2%.Often seen as foreign central banks and international institutions.A higher number is indicative of strong domestic demand, while a lower number is weaker demand.

AUCTION GRADE:

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