U.S. Treasury auctions off $58 billion of 3-year notes at a high yield of 3.669%

U.S. Treasury auctions off $58 billion of 3-year notes at a high yield of 3.669%

• WI level at the time of the auction 3.662%

• High-yield 3.669%
• WI level at the time of the auction
• Tail 0.7 basis points versus six month average up 0.4 basis points
• Bid-to-Cover 2.53X versus six month average of 2.59X
• Directs 28.13% versus six month average up 19.9%
• Indirects 54% versus six month average up 65.5%
• Dealers 17.9% versus six month average of 14.7%

Auction Grade : C-

The auction was not great. The foreign demand was weaker than expected. That pushed up the dealer commitment. The tail was positive at +0.7 basis points in the bid to cover was monthly below the six-month average.

I gave it a grade of C- but only barely.