Today’s 10Y auction was not bad/not exceptionally good. The long end of the curve continues to see good buyers post auction, sending yields to the lowest levels of the day.
10Y Auction: Yield 3.21 vs. 3.494 prev (4/13), Indirects: 47.18 vs. 42.42, Bid To Cover: 3.00 vs. 3.13, Coupon 3.125 vs. 3.625
Indirects were slightly better but still remain below the last 10 average around 51.05 while the BTC remains below the last 10 avg of 3.09. Interesting thing to note, out of the last 10 auctions, last month’s auction fetched a 3.625 coupon which was the highest in that timeframe. At 3.125, we’re still about the last 10 avg of 2.975 on the coupon, while high yield last 10 average has been around 3.11.
Tomorrow’s auction is 16bn in 30Y, which will complete issuance for this week. Have a good day.