High efficiency: 4.56%
- Previous: 4.166%
- Average over six auctions: 4.285%
WI level at time of auction: 4.529%
Tail: 3.1 basis points
- Previous: 0.9 basis points
- Average over six auctions: 0.7 basis points
Offer/coverage ratio: 2.34x
- Previous: 2.51x
- Average over six auctions: 2.52x
Dealers: 23.96%
- Previous: 17.1%
- Average over six auctions: 16.1%
Direct (a measure of domestic demand): 14.24%
- Previous: 18.6%
- Average over six auctions: 18.1%
Indirect (a measure of international demand: 61.8%
- Previous: 64.3%
- Average over six auctions: 65.9%
AUCTION GRADE: F
There was nothing good in the auction despite rates rising today due to higher than expected CPI.
The amount to be covered was low, dealer participation was forced to increase as domestic and international demand was low. The 3.1 basis point tail also indicates that investors have turned away from auctions.
Any gains from the Fed members’ initial reaction have been erased, with the NASDAQ index now down -188 points, or -1.16%. The S&P is down -66.45 points or -1.28%.
On the American debt market:
- two-year yield 4.966%, +22 basis points
- 5-year yield 4.602% +22.6 basis points
- 10-year yield 4.56 percent, +19.5 basis points
- 30-year yield 4.631% +13.2 basis points
cnbctv18-forexlive
