• High-yield 3.790%
• WI level at the time of the auction 3.790%
• Tail 0.0 basis points vs 0.4 basis point six-month averages
• Bid to cover 2.50X vs 6 month average of 2.46X
• Dealers 10.4% versus 11.4% six-month average
• Directs 26% versus 26.0% six-month average
• Indirects 63.6% vs 62.6% six-month average

AUCTION GRADE: B-

The auction of $44 billion of 7 year notes completes the coupon auctions for the week. The 2 and 5 year note auction’s were met with average to below average demand. The 7 year note was marginally higher than average. I give it a grade of B-.

The Tail was 0.0 basis points which when compared to the six-month average was 0.4 basis points last. The bid to cover was marginally higher than the average. Indirect buying was 1% higher than the average while domestic buying from direct bidders was right on the average. Overall the dealers were saddled with 1% less than the norm.

Overall, the auction was a little bit better than average.

With the two-year down -3. Ppoint basis points, and the 10 year also down -3.1 basis points. The 10 year yield is just above the 4% level at 4.017%.

Meanwhile, US stocks continue to slide. The NASDAQ index is down -2.0%. The S&P is down -1.16%. The NASDAQ index fell by -2.03% back on February 12 and by -2.39% back on January 20. Today’s decline is the 3rd worst day for the year.

Shares of Nvidia are now down -5.2% . The other chipmakers like Broadcom are also sharply lower (-6.67%). AMD shares are down -4.27%. Intel shares are down -3.7%,