Treasury's $37 B 10-year auction was a star, and very well received
Treasury's $37 B 10-year auction was a star, and very well received. The offering was awarded at 3.209%, well through the 3.221% at the bid deadline. And it compares to October's 3.225%. The latter was the highest since the spring of 2011. There were $68.4 B in bids for a 2.54 cover, better than the 2.39 last month (and in line with the 2.55 from the August refunding), and up fractionally from the 2.51 average, even as the volume was increased. Indirect bidders accepted a record 73.8%, which was much stronger than the prior 64.5% and the 63.1% average. But, direct bidders took only 1.2%, much weaker than the prior 5.4%, and continues a trend of generally light direct bidding across maturities. Primary dealers were awarded 25.0% versus 30.1%. The $30 B 52-week bill 2.640%.