US treasury auctions off $58 billion of 3-year notes at a high yield of 3.784%

The US treasury auctioned off $58 billion of the 3year notes:

• High yield 3.784%
• WI level at the time of the auction 3.76%.
• Tail versus 2.4 basis points six-month average of +0.4 basis points.
• Bid to cover 2.47X versus six-month average of 2.62X.
• Directs (a measure of domestic demand) 6.2% versus six-month average of 19.3%
• Indirects (a measure of international demand) 73.0% versus six-month average of 64.9%
• Dealers 20.7% versus six-month average of 15.8%

Auction grade D

US domestic buyers of three year notes were nonexistent at 6.2% versus six-month average of 19.3%. The international buyers took up the slack at 73% but not without getting a yield concession of 2.4 basis points above the WI level at the time of the auction. The bid to cover was less than the six-month average. The dealers were saddled with 20.7% from 15.8% (six-month average)