• 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:

More ahead:

• 10-year reopening tomorrow

• 30-year reopening Thursday

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