US treasury auctions off $70 billion of 5-year notes at a excessive yield of four.138%

• Excessive yield four.138

• WI yield st the time of the public sale four.122

• Tail 1.6 foundation level 6-auction avg. zero.5bps

• Bid-to-Cowl 2.39X vs 6-auction avg. 2.37x

• Sellers 14.2% vs 6-auction avg. 14.four%

• Directs (a measure of home demand) 9.50% vs. 6-auction avg. 17.6%

• Indirects (a measure of worldwide demand) 76.four% vs 6-auction avg. 68.zero%

AUCTION GRADE: C-

Overview: The 5 12 months word public sale had a bigger than common sale of 1.6 foundation factors indicative of sluggish demand. THe bid to cowl was close to the common.

Wanting on the patrons, home demand was very week at solely 9.5% versus 17.6% common. Nonetheless, the worldwide demand was significantly better than anticipated at 76.four% versus 68.zero%. The issue, is that the patrons weren’t that aggressive relative to the WI degree.

This text was written by Emma Wang at www.ubaidahsan.com.



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