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Tailing 3Y Auction Prices At Highest Yield Since April 2010

In the first of this week's three auctions, the Treasury sold $24 billion in 3 Year paper in a medicore, tailing auction, which stopped at 1.75%, a 0.2bps tail to the 1.748% when issued, and the highest yield since 1.776% in April 2010.

In addition to the tail, the internals were also mediocre, with the Bid to Cover of 2.76 below last month's 2.83, and also below the 2.88 6 month average as well as under the slightly smaller 2.84 for the four prior Refunding auctions. Total bids amounted to $69.1bn for $26.9bn in notes for sale vs the 6 previous auction average of $71.8b in bids for average of $26.6b in notes sold.

Indirects were awarded 53.5%, below October's 54.3%, and also below the 55.6% 6MMA, while Dealers got 37.5%, below the 41.3% 6 month average, leaving Directs with 9% of the final allottment, modestly above both the 7.1% in October and the 8.8% average.

Altogether, a good, if unremerkable auction to start off the week's bond sales.