- High return: %, average of six auctions 4.390%
- Tail: -0.8bp, average of six auctions -0.1bp
- Bid to Cover Ratio: 2.67x, Average of Six Auctions 2.57x
- Merchants: 14.8%, average of six auctions 17.0%
- Direct: 21.3%, average of six auctions 17.8%
- Indirect: 64.0%, average of six auctions 65.2%
Auction grade: A-
This week’s coupon auction got off to a strong start with the three-year note auction attracting strong demand. The best bid was from domestic buyers who dropped 21.3%, well above the six-month average of 17.8%. International demand was slightly below the six-month average.
The maximum coverage was above average. The tail was negative by a larger than average amount of -0.8 basis points.
The only downside was that the international demand was a little below average. That’s good enough for an A- grade.