US treasury auctions $55B of 5 year notes at a high yield of 4.420%

<p><br></p><ul data-v-2b84ef95=""><li data-v-2b84ef95=""><strong data-v-2b84ef95="">High Yield</strong>: 4.420%<ul data-v-2b84ef95=""><li data-v-2b84ef95="">Previous: 4.899%</li><li data-v-2b84ef95="">Six-auction average: 4.316%</li></ul></li><li data-v-2b84ef95=""><strong data-v-2b84ef95="">Tail</strong>:-0.5 bps<ul data-v-2b84ef95=""><li data-v-2b84ef95="">Previous: 1.9 basis points</li><li data-v-2b84ef95="">Six-auction average: 0.1 basis points</li></ul></li><li data-v-2b84ef95=""><strong data-v-2b84ef95="">Bid-to-Cover Ratio</strong>:2.46X<ul data-v-2b84ef95=""><li data-v-2b84ef95="">Previous: 2.36x</li><li data-v-2b84ef95="">Six-auction average: 2.52x</li></ul></li><li data-v-2b84ef95=""><strong data-v-2b84ef95="">Dealers</strong>: 16.9%<ul data-v-2b84ef95=""><li data-v-2b84ef95="">Previous: 19.4%</li><li data-v-2b84ef95="">Six-auction average: 13.3%</li></ul></li><li data-v-2b84ef95=""><strong data-v-2b84ef95="">Directs</strong>:17.6%<ul data-v-2b84ef95=""><li data-v-2b84ef95="">Previous: 19.1%</li><li data-v-2b84ef95="">Six-auction average: 19.1%</li></ul></li><li data-v-2b84ef95=""><strong data-v-2b84ef95="">Indirects</strong>:65.5%<ul data-v-2b84ef95=""><li data-v-2b84ef95="">Previous: 61.5%</li><li data-v-2b84ef95="">Six-auction average: 67.6%</li></ul></li></ul><p>Auction Grade: C+</p><p>Highlights: Unlike the 2 year note auction from earlier, there was a negative tail. The Bid to cover was ok, but short of the 6-month average.&nbsp; The international and domestic demand was less than the 6-month averages. That led to more supply heading to the dealers.&nbsp;&nbsp;</p><p><br></p><p><br></p>

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