Loading ...“Stellar” 3 Year Auction: Highest Bid To Cover Since 2015
The auction stopped 0.9 bps through the 1.529% When Issued, printing at 1.520% – the third consecutive “stopping through” auction in a row – with the highest bid/cover in more than a year and a half, as 3.13 bids tendered for every dollar, the highest since December 2015, far above the 2.80 6 month average. There were $75.1BN bids for $24BN in notes sold (ex-SOMA).
The internals were also impressive, with foreign buyers, or Indirects, awarded 64.1%, above last month’s 52.6% and above the 6MMA of 54.6%. The $20.960 billion Indirect bid today was far above the $15.229 billion average of the prior six months. In fact, outside of the $22.296 billion bid in June, it was the largest since January 2012. The hit ration was good for a bid of that size, boosting the Indirect takedown to 64.5% which is well above the 54.6% average of the prior six months. That is the third largest Indirect takedown on record, behind only the 65.6% takedown two months ago and the record 68.5% takedown in November 2009.