Treasury's $12 B bond reopening was weak
Treasury's $12 B bond reopening was weak, as feared, but consistent with the lackluster demand seen in the first two legs. The offering stopped at 2.790%, tailing slightly from the 2.787% at the bid deadline. And it compares to August's 2.818% award rate. As noted previously, this is the richest award rate going back to October, and that was a major drawback. Bids totaled nearly $26.5 B for a low 2.21 cover, below both last month's 2.32 cover and the 2.28 average. It's the lowest since the $15 B May refunding. Indirect bidders took 58.8%, down from the prior 66.8% and the 62.6% average. It's the smallest since November. Direct bidders received 6.8% compared to 5.4%, while primary dealers were awarded 34.4% versus 27.8%.