The US treasury auctions of $16 billion of 20 year bonds and a high yield of 4.830%

• High yield 4.830%
• WI level at the time of the auction 4.820%
• Tail 1.0bps vs six with average +1.2 basis points
• Bid to cover 2.43X vs six month average of 2.54X
• Directs (a measure of domestic demand) 19.5% vs six-month averages of 16.9%
• Indirects (a measure of international demand) 63.0% vs 6 month average of 67.5%
• Dealers 17.5% vs 6 month averagge of 15.6%

Auction Grade: C-

The tail was positive but it was less than the 6-month average. The Bid to cover was lower than average.

Domestic demand was stronger than average and international demand was weaker.

The dealers were saddles with more than average