Bid to cover at 2.35x vs 2.51X prior
- High yield of 2.689% versus WI yield of 2.681%
- Bid to cover 2.35x vs 2.51x at last auction
- indirects accepted 59.5% versus 56.9% prior auction
- directs 12.2% versus 20.8% prior auction
- 28.4% to primary dealers
- the 10 year notes sold at the lowest yield since January 2018
Looking at the daily chart of the 10 year, the high yield peaked at 3.2594% in early October. The yield moved to a low in January at 2.5412%. The last month or so has been between 2.54% on the bottom and 2.80% on the topside. The 50% of the move up from the September 2017 low comes in at 2.6369%. The low last week took a peek below that level but bounced higher. A move below would tilt toward the downside. Stay above favors the upside.
Overall auction was a D with a tail and demand light.