US treasury sells $69 billion of 2-year notes at a high yield of 4.204%
The first coupon auction is complete with the U.S. Treasury selling $69 billion of 2 year notes. The auction results show
- high yield 4.204%
- WI level at the time of the auction 4.208%
- Tail -0.4 bps vs 6 month average of +0.2 basis points
- Bid to cover 2.60X versus 6 month average of 2.61X
- Directs 23.1% vs average of 30.1%
- Indirects 66.0% vs average of 56.9%
- Dealers 10.9% vs average of 13.0%
Auction Grade B+
The Tail was modestly better than the average. The bid to cover was right near the average. The domestic bidders did not show up with below average demand, but the international buyers made up for the shortfall with much stronger than average demand. That left the dealers with a lower takedown.
The treasury will auction off 5 year notes and 7 year notes on Wednesday and Thursday respectively to complete the coupon auctions for the week.
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This article was written by Greg Michalowski at investinglive.com.