Auction Grade: D

  • Tail is well above the 6 month averageof 1.2 bps
  • Directs – a measure of domestic demand – was a touch stronger than expectations
  • Indirect – much weaker than expectations. This is a measure of foreign demand
  • Dealers were saddled with more than average.

The only thing that kept it from an F is the domestic demand but that was still at a larger than expected tail. So it is a small victory in what was an auction where demand was tepid.