The US treasury auctions off $12 billion of 20 year bonds at a high yield of 4.036%

<p>The US treasury auctioned off a $12 billion of 20 year bonds. The details of the auction results compared to the six-month averages shows:</p><ul><li>High-yield 4.036%</li><li>WI level at the time of the auction 4.035%</li><li>Tail 0.1 basis points versus the 6 month average of -1.1 basis points</li><li>Bid to cover 2.68X versus the six-month average of 2.71X.</li><li>Directs (a measure of domestic demand) 21.7% versus the six-month average of 18.5%</li><li>Indirects (a measure of international demand) 68.8% versus the six-month average of 71.8%</li><li>Dealers 9.6% versus the six-month average of 9.7%</li></ul><p>Overall, domestic demand was strong. International demand was weak. Bid the cover was near the average. Tail was higher than the average. Auction grade: C-</p>

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