U.S. Treasury auctions off $70 billion of the 5-year note at a high yield of 4.121%

• High-yield 4.121%
• WI level at the time of the auction 4.110%
• Tail 1.1 basis point versus a six month average of 0.5%
• Bid to cover 2.40X versus six month average of 2.36X
• Dealers 13.97% vs six month average of 16.3%
• Directs (domestic investors) 18.78% vs six month average of 17.9%
• Indirects (international investors) 67.25% versus the six month average of 65.8%

Overall grade: B

• The good: Dealers take less than the average because both domestic and international buying was modestly above average levels.
• The average: Bid to cover was near the 6-month average
• The not so good: The tail of 1.1 basis points above the WI level at the time of the auction was higher and above the 6 month average.

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