The US treasury auctions off $40 billion of 10 year notes at a high yield of 4.519%

<p>The U.S. Treasury auctioned off $40 billion of 10-year notes. The key components showed:</p><ul><li>High Yield: 4.519%. 6-Auction Average 3.999%, Previous 4.61%</li><li>Tail: 0.8 basis points. 6-Auction Average 0.9 basis points, Previous 1.8 basis points</li><li>Bid-to-Cover: 2.45X. 6-Auction Average 2.49 times, Previous 2.5 times</li><li>Dealers: 15.1%. 6-Auction Average 14.2%, Previous 18.7%</li><li>Directs: 15.17%. 6-Auction Average 19.7%, Previous 20.9%</li><li>Indirects: 69.73%. 6-Auction Average 66.1%, Previous 60.3%</li></ul><p>Auction Grade: C</p><p>There was a positive tail, but relative to the last 6 months, it was a lower than the average. THe bid to cover was near the 6 month average. The international demand was strong and above its six-month average, but the domestic demand was weak and below its six-month average. </p><p>Some good. Some bad. Grade is therefore a C for average. </p>

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