The US treasury auctions off $43 billion of five-year notes at a high yield of 4.17%

<ul><li>High yield 4.17%</li><li>WI level at the time of the auction 4.166%</li><li>Tail 0.4 basis points vs a six-month average of -0.7 basis points</li><li>Bid to cover 2.60X versus six-month average of 2.54X</li><li>Directs 22.13% versus six-month average of 17.9%.</li><li>Indirects 64.38% versus six-month average of 70.7%.</li><li>Dealers 13.49% versus six-month average of 11.4%.</li></ul><p>Auction grade: D+</p><p>There was a positive tail (0.4 basis points) which is much higher than the -0.7 basis point average. The international demand was well below the 6-month average. Domestic demand was well above the 6 month average. Dealers were saddled with more of the auction overall.</p>

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