- High-yield 4.405% versus 4.403% last month
- WI at the time of the auction 4.383%
- Tail +2.2 basis points vs six-month average of -0.9 basis points
- Bid to Cover 2.30X vs six month average of 2.42X
- Dealers 15.88% vs six-month average of 14.9%
- Directs 23.36% vs six-month average of 17.5%
- Indirects 60.76% vs six-month average of 67.6%
AUCTION GRADE: D+
The 30-year bond auction was mixed but mostly worse than the six-month average of the components
The Bad:
- Tail was 2.2 basis points above the WI level at the time of the auction
- Bid to cover was less than the 6 -month average
- international demand (indirect) was much lower than the six month average
The Good:
- Domestic demand was much stronger than the six-month average
Overall, the grade has to be less than the average but the domestic demand saves the day.
Meanwhile, stocks remain under pressure with the S&P and NASDAQ and a fairing the worst. The S&P is down -51 points or -0.91%. The NASDAQ index is…
