- High return 4.466% (last month was slightly lower at 4.452%)
- WI level at auction time 4.467%
- Tail -0.1 bp vs 6-month average -0.6 bp
- Coverage offered at 2.68X vs. 6-month average of 2.63X
- Traders 8.47% vs. 6-month average 12.1%
- Directed 14.32% vs. 6-month average of 18.2%
- Indirect 77.2% vs. 6-month average 69.7%
Class B Auction
The auction came in just below the WI level (-0.1bp). The bid to cover (a measure of demand) was close to the 6-month average. Traders were left with much less than expected as international buyers came in strong – buying 77.2% of the auction which was well above the average of 69.7%.
However, the number of local buyers was much lower than average.
So, some are good and some are average/below average. The mix is good enough to get a B grade for auction.
Looking at the yield curve:
- 2-year yield 4.444%, -0.1bp
- 5 years 4.084%, -0.6bps
- 10-year yield 4.155%, -1.1 bps
- 30 years 4.367%, -0.7bp
The Nasdaq hit a new low below 18,000 at 17,972.87, but is currently trading down -510 points or -2.76% at 17,998.
The S&P 500 fell -1.38% and the Dow Jones continued to improve and on page 4 hit a new record high. It rose 174.20.43% to 41,130.36.
Russell Small Cap Indexes fell -1.05% as they took a breather from their recent rally.