US sells USD 47bln 5yr notes; tails 3.5bps

• High Yield: 3.271% (prev. 2.736%, six-auction average 2.123%)


• WI Yield: 3.236%


• Tail: 3.5bps (prev. 0.4bps, six-auction avg. -0.1bps)


• Bid-to-Cover: 2.28x (prev. 2.44x, six-auction avg. 2.46x)


• Dealers: 23.83% (prev. 17.0%, six-auction avg. 17.0%)


• Direct: 19.7% (prev. 20.0%, six-auction avg. 18.1%)


• Indirect: 56.47% (prev. 62.9%, six-auction avg. 64.9%)

Analysis details (18:17)

The 5yr auction was dismal seeing a hefty 3.5bps tail, much larger than the prior 0.4bps tail and average 0.1bp stop through. The weak demand saw the bid-to-cover fall to 2.28x from 2.46x while the breakdown saw a similar representation of the earlier 2yr auction, where indirect demand slumped, direct demand was marginally above average, but not enough to offset the soft indirect bidders, seeing dealers take a larger chunk of the auction than last month's auction, and the six-auction average. 

27 Jun 2022 - 18:02- Fixed Income- Source: Newswires