US treasury auctions off $43 billion of 5-year notes at a higher yield of 4.019%

<ul><li>High-yield 4.019%</li><li>WI level at the time of the auction 4.012%</li><li>Tail 0.7 bps vs. 6-month auction average of -0.8bps.</li><li>Bid-to-Cover 2.52X vs. 6-month auction average of 2.53x.</li><li>Dealers 12.21% vs.6-month auction average of 12.2%.</li><li>Directs (a measure of domestic demand) 19.7% vs 6-month auction average of 17.7%.</li><li>Indirects (a measure of international demand) 68.1% vs. 6-month auction average of 70.1%.</li></ul><p>Auction Grade: D+</p><p>The five-year auction was met with below average demand. There was a positive tail of 0.7 basis points. The bid to cover was near the average as was dealer ownership. Domestic demand was a little bit better than expectations but international demand was below the 6 month averages. </p><p>There was little in the details that was above average, and more that was below average. </p>

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