High Yield: 2.121%
Tail: 5.6 basis points
Bid-to-Cover Ratio: 2.10x
Dealer Allocation: 25.42%
Direct Allocation: 23.15%
Indirect Allocation: 51.43%
US yields show lower short term yields but sharply higher yields out the curve.
The 2-10 year spread is up to 27 bps. It was near flat on November. The 50% midpoint of the move down from the 2021 high comes in right around that level at 26.7 bps.
This article was written by Greg Michalowski at www.forexlive.com.
- Compared to the previous auction's yield of 1.67%.
- Higher than the six-auction average of 1.99%.
Tail: 5.6 basis points
- Lower than the previous auction's tail of 15 basis points.
- Lower than the six-auction average of 9.0 basis points.
- Note: The 5-year TIPS traded at 2.065% at 1:00 PM EST.
Bid-to-Cover Ratio: 2.10x
- Lower than the previous auction’s ratio of 2.40x.
- Also lower than the six-auction average of 2.50x.
Dealer Allocation: 25.42%
- Slightly lower than the previous 25.79%.
- Below the six-auction average of 5.55%.
Direct Allocation: 23.15%
- Higher than the previous auction’s 17.30%.
- Exceeds the six-auction average of 16.73%.
Indirect Allocation: 51.43%
- Lower than the previous auction’s 74.84%.
- Below the six-auction average of 77.7%.
US yields show lower short term yields but sharply higher yields out the curve.
- 2 year 4.318%, down -3.6 bps
- 5 year 4.432% up 4.9 bps
- 10 year 4.588%, up 8.8 bps
- 30 year 4.768%, up 10.8 bps
The 2-10 year spread is up to 27 bps. It was near flat on November. The 50% midpoint of the move down from the 2021 high comes in right around that level at 26.7 bps.
This article was written by Greg Michalowski at www.forexlive.com.