Unlike yesterday’s ugly 2Y auction which printed at the highest yield since October 2008, the just concluded sale of $ 34 billion in 5 Y paper was solid if uneventful, stopping on the screws with the When Issued at 1.911%, the highest yield since March 2017. Non-comps were $ 103.9 million, up from $ 92.0 million last month.
The bid to cover of 2.52 was lower than the past two months, if slightly higher than the 6 month average of 2.48.
The internals were in line, with Indirects awarded 69.6%, just above the 6 month average of 66.5%, Directs bidders dropped from 13.5% last month to 7.1%, while dealers were awarded 23.3% versus the previous six auction average of 25.6%.
In summary: a solid if boring 5 year auction, which brings us to tomorrow’s “belly buster” 7 year auction.