- High yield 4.466% (last month was a little lower at 4.452%)
- WI level at the time of the auction 4.467%
- Tail -0.1 basis points vs six-month average of -0.6 basis points
- Bid to cover 2.68X vs six-month average of 2.63X
- Dealers 8.47% vs six-month average of 12.1%
- Directs 14.32% vs six-month average of 18.2%
- Indirects 77.2% vs six-month average of 69.7%
AUCTION GRADE B
The auction came in just below the WI level (-0.1 basis point tail). The Bid to cover (a measure of demand) was near the 6-month average. The dealer were left with much lower than expected as international buyers came in strong – buying 77.2% of the auction which was well above the average of 69.7%.
However, the domestic buyers were much less than the average.
So some good and some average/below average. The mix is good enough for B grade for the auction.
Looking at the yield curve:
- 2 year yield 4.444%, -0.1 basis point
- 5-year 4.084%, -0.6 basis point
- 10 year yield 4.155%, -1.1 basis points
- 30-year 4.367%, -0.7 basis points
The Nasdaq did reach to a new low below 18000 to 17972.87, but is currently trading down -510 points or -2.76% at 17998.
S&P index is down -1.38% and the Dow continues to better and on page 4 a another record high. Its up 174.20.43 percent at 41,130.36.
The small-cap Russell indexes down -1.05% as it takes a breather from the recent surge.