U.S. 10-year Treasury Bond Auction With High Yield of 1.518% With 0.4 BPs Tail

The US Treasury 20-Year Bond Sale performed worse than expected, garnering a C- rating across the Fixed Interest desk. The tail was 0.4 basis points with WI level at time of the auction 1.514% and the high yield of 1.518% at the auction.

Heading into the auction US yields were higher with the current 10 year trading up at 1.52% or up 4.1 basis points

Auction Highlights

  • Duration: 10 Years
  • Amount:  $36 billion
  • High yield 1.518% (prev 1.444%)
  • WI level at time of auction 2.051%
  • Tail +.4 basis points
  • Bid-Cover Ratio: 2.43 (prev 2.35) vs six month average of 2.34X
  • Direct Accepted: 17.8% (prev 13.8%) vs six month average of 18.7%
  • Indirect Accepted: 68.8% (prev 71.0%) vs six month average of 61.7%
  • Dealers 13.8% vs six month average of 19.6%

Auction grade: C-

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