U.S. Treasury sells $37 billion of 10 year notes at a high yield of 4.296%

<ul><li>High Yield: 4.296%</li><li>WI level at the time of auction 4.282%</li><li>Tail: 1.4 basis points, Six-auction average 0.9 basis points</li><li>Bid-to-Cover: 2.53X, Six-auction average 2.49x</li><li>Dealers: 17.3%, Six-auction average 14.6%</li><li>Directs (a measure of domestic buyers): 18.87%, Six-auction average 19.0%</li><li>Indirects (a measure of international buyers): 63.83 percent, Six-auction average 66.4%</li></ul><p>Auction grade: D+</p><p>There was a greater than average number of bids, and the domestic buyers were about average. However, the international buyers were less than the six month average. There was a positive tail of 1.4 basis points higher than the six month average of 0.9 basis points, and the dealers were saddled with more of the auction then average.</p><p>It is a Fed meeting week. So perhaps there is some apprehension to "getting involved". Nevertheless, the 3-year note auction was not so great, and the 10-year follows in those sluggish footsteps.</p>

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