• High Yield: %, six-auction average 4.390%
• Tail: -0.8 bps, six-auction average -0.1bps
• Bid-to-Cover: 2.67x, six-auction average 2.57x
• Dealers: 14.8%, six-auction average 17.0%
• Directs: 21.3.%, six-auction average 17.8%
• Indirects: 64.0%, six-auction average 65.2%

AUCTION GRADE: A-

The coupon auction for the week has gotten off to a strong start with the three year note auction attracting solid demand. The best bid was from domestic buyers as they took down 21.3%, much higher than the 17.8% six month average. International demand was just below the six month average.

The big to cover was above average. The Tail was negative by a greater than average -0.8 basis point.

The only downside was the international demand was just a touch lighter than average. That is good enough for a grade of A-.

This article was written by Greg Michalowski at www.forexlive.com.