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Munich
Saturday, June 19, 2021

U.S. Treasury auctioned off $27 billion of 20 year bond at a high yield of 2.286%

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WI level was at 2.276%

  • WI yield level at time of auction was 2.276%
  • High yield 2.286%. 1 BP tail vs the WI yield of 2.276%
  • Bid to cover 2.24x vs six month average of 2.34x
  • Dealers 23.75% vs the 6 month average of 24.5%
  • Indirects 56.7% vs 6 month of 58.7%
  • Directs 19.5% vs 6 month of 16.8%

Auction grade: C+

Not the best of auctions with the main numbers worse than the 6 month average along with a 1 basis point tail vs the WI level. 

  • Bid to cover < 6 month avg
  • Indirects – a measure of foreign demand – was less than the 6 month average

The good news is the Directs were > than average and left the dealers with owning less than the average.

Initially I gave a D+ grade but has upped it C+ after reevaluation.   

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