breaking news The US Treasury auctioned off 32 billion 10-year notes with a high yield of 3.625%

• High yield 3.625 (last month 4.14%)
• WI level at time of auction 3.588%
• Tail 3.7 bps versus 1.8 bps on average
• Bid to hedge 2.31X vs six-month average of 2.40X
• Direct (a measure of domestic demand) 18.7% vs. 19.0%
• Indirect (a measure of international demand) 59.45% vs. six-month average of 62.8%
• Dealers 21.86% vs. 18.3%

The last auction had a yield of 4.14%, which was well above the current auction, but it was also met with tepid demand (3.4bp tail).

Auction Rating: D-

Not much good in this auction.

The tail is above the average by 1.8 basis points and was even higher than last month’s tail of 3.4 basis points. Coverage was below the six-month average. Domestic demand was near average, but international demand was below the six-month average (indirect bidders). This led to dealers holding an above-average percentage of graders at 21.86% compared to an average of 18.3%.

He only gets a D- because the yield

Yield

A yield represents the income generated by an investment or security over a certain period of time. Returns are usually displayed in percentage terms and come in the form of interest or dividends received. These figures do not include price changes, which separate them from the total return. Therefore, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products. Returns can be calculated as a ratio or internal rate of return, which can also be used to indicate the owner’s total return or a portion of income. Why are returns important? At any time, all financial instruments compete in a public market. Returns analysis is one of many measures used by analysts and investors and reflects a singular part of the total return of holding a security. For example, a higher return allows the owner to recoup his investment sooner and thus mitigates risk. By extension, a high return may have resulted from a decline in the security’s market value due to higher risk. Yield levels are also influenced by inflation expectations. Fears of higher levels of inflation in the future suggest that investors would ask for a high yield or a lower price relative to the coupon today. The maturity of the instrument is also one of the elements that determines the risk. The relationship between yields and the maturity of instruments of similar creditworthiness is described by the yield curve. Instruments on longer intervals generally have a higher yield than short-term instruments. The yield of a debt security is generally linked to the creditworthiness and probability of default of the issuer. The higher the risk of default, the higher the return would be in most cases since issuers must offer investors some compensation for risk.

A yield represents the income generated by an investment or security over a certain period of time. Returns are usually displayed in percentage terms and come in the form of interest or dividends received. These figures do not include price changes, which separate them from the total return. Therefore, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products. Returns can be calculated as a ratio or internal rate of return, which can also be used to indicate the owner’s total return or a portion of income. Why are returns important? At any time, all financial instruments compete in a public market. Returns analysis is one of many measures used by analysts and investors and reflects a singular part of the total return of holding a security. For example, a higher return allows the owner to recoup his investment sooner and thus mitigates risk. By extension, a high return may have resulted from a decline in the security’s market value due to higher risk. Yield levels are also influenced by inflation expectations. Fears of higher levels of inflation in the future suggest that investors would ask for a high yield or a lower price relative to the coupon today. The maturity of the instrument is also one of the elements that determines the risk. The relationship between yields and the maturity of instruments of similar creditworthiness is described by the yield curve. Instruments on longer intervals generally have a higher yield than short-term instruments. The yield of a debt security is generally linked to the creditworthiness and probability of default of the issuer. The higher the risk of default, the higher the return would be in most cases since issuers must offer investors some compensation for risk.
Read this term was about 50 basis points lower than a month ago.