US treasury sells $13 billion of 20 year bonds at a high yield of 4.542%

• High yield 4.543%
• WI level at the time of the auction 4.562%
• Tail: -2.0 bps vs 6-month average up 0.5 basis points
• Bid to cover: 2.79x versus 6-month average of 2.56x
• Directs: 17.16% vs 6-month average of 19.7%
• Indirect: 73.49% vs 6- month average of 66.6%
• Dealers 9.39% vs 6-month average of 13.7%

Auction Grade: A

The only bad from the auction was the domestic (US) buyers which was light but the international buyers more than offset the decline with large 73.5% take down. Dealers were saddled with much less than average as a result.

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