The US Treasury auctions off $13B of 20 year notes at a high yield of 4.592%

<ul><li>WI level at the time of the auction: 4.592%</li><li>High Yield: 4.595%<ul><li>Previous: 4.499%</li><li>Six-auction average: 4.055%</li></ul></li><li>Tail: -0.3bps<ul><li>Previous: 0.9bps</li><li>Six-auction average: -0.2bps</li></ul></li><li>Bid-to-Cover: 2.74X<ul><li>Previous: 2.56x</li><li>Six-auction average: 2.64x</li></ul></li><li>Dealers: 9.27%<ul><li>Previous: 11.4%</li><li>Six-auction average: 10.7%</li></ul></li><li>Directs: 25.36%<ul><li>Previous: 20.2%</li><li>Six-auction average: 19.7%</li></ul></li><li>Indirects: 65.36%<ul><li>Previous: 68.4%</li><li>Six-auction average: 69.7%</li></ul></li></ul><p>Auction Grade: A-</p><p>Highlights: The 20-year auction was met with strong domestic demand. The direct bidders account for 25.36% which was well above the 19.7% average over the last 6 auctions. Indirect (a measure of international demand) were light however with international investors taking only 65.36% versus the 6-month average of 69.7%. The bid cover was strong at 2.74X well above the 6 month average of 2.64X. There was a -0.3 basis point tail which compares favorably to the average of -0.2 basis points. </p><p>The yield wasn't markedly higher than the previous auction (about 10 basis points) and the 6 month average (about 54 basis points).</p><p>The only bad was the indirect but they were simply outbid by domestic investors today. </p>

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