Moments ago the Treasury sold $24 billion in 3 Year paper in an auction that was uneventful, if somewhat on the weaker side.
The high yield of 1.572% tailed the When Issued by 1 basis point, and was higher than both last month"s 1.517% and the last six auction average of 1.423%.
The bid to cover rose modestly from last month"s 2.62 to 2.72 if still below the 6 month average of 2.74. Total bids of $74.2b for $31.9b in notes sold vs six previous auction average of $67.4b in bids for average of $25.6b in notes sold
The internals were in line with recent performance, with Indirects taking down 50.8%, slighly above the 48.7% 6 month average, Directs taking 9.3% of the auction, the highest since October, and above the 6MMA of 8.0%, leaving Dealers with 39.9%.
Overall, a mediocre auction, with a slighly higher bid to cover, offset by a modest tail, and will be quickly forgotten ahead of tomorrow"s more important 10Y auction.
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