U.S. Treasury auctions of $21 billion of 30 year bonds at a high yield of 4.229%

<ul><li>High Yield 4.229 with a six-auction average of 4.399%.</li><li>WI level at the time of the auction was at 4.230%</li><li>Tail: Previous -0.1 basis points versus six-auction average +2.2 basis points.</li><li>Bid-to-Cover Ratio: 2.37X vs six-auction average at 2.39x.</li><li>Dealers' Participation: 14.52% versus six-auction average at 16.0%.</li><li>Direct Bidders (a measure of domestic demand): 17.71% versus six-auction average of 18.1%.</li><li>Indirect Bidders (a measure of international demand): 67.77% versus six-auction average of 65.8%</li></ul><p>Auction grade: B+</p><p>Highlights: There a negative tail which is indicative of strong demand, especially against the six-month average of 2.2 basis points. The bid to cover was close to the six-month average. Dealers were saddled with less than the average as a result of strong international demand. The domestic demand was about average. </p><p>Santelli on CNBC gave it a C+. He is stingy grader today (I might be a little easy on the market, but it did come in with a negative tail and the recent history has not been supportive of strong demand). </p>

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