U.S. Treasury sells $37 billion of 10 year notes at a high yield of 4.296%

• High Yield: 4.296%
• WI level at the time of auction 4.282%
• Tail: 1.4 basis points, Six-auction average 0.9 basis points
• Bid-to-Cover: 2.53X, Six-auction average 2.49x
• Dealers: 17.3%, Six-auction average 14.6%
• Directs (a measure of domestic buyers): 18.87%, Six-auction average 19.0%
• Indirects (a measure of international buyers): 63.83 percent, Six-auction average 66.4%

Auction grade: D+

There was a greater than average number of bids, and the domestic buyers were about average. However, the international buyers were less than the six month average. There was a positive tail of 1.4 basis points higher than the six month average of 0.9 basis points, and the dealers were saddled with more of the auction then average.

It is a Fed meeting week. So perhaps there is some apprehension to “getting involved”. Nevertheless, the 3-year note auction was not so great, and the 10-year follows in those sluggish footsteps.