Treasury's $26 B 3-year sale was on the soft side, as was suspected.
Treasury's $26 B 3-year sale was on the soft side, as was suspected, but not bad considering. The note stopped at 2.280%, near the high of the session, and tailing fractionally versus the 2.278% at the bid deadline. It compares to the 2.080% from the January auction, and is the cheapest award rate going back to 2007. There were $78.1 B in bids for a 3.00 cover, below last month's 3.13, though was hurt modestly by the $2 B increase in size. Yet, it's above the 2.87 average. Indirect bidders took only 49.8%, a little soft versus the 54.9% last month, which was also the average. Direct bidders took 9.7%, down from 11.5% previously, and primary dealers accepted 40.5%, up from the 33.6% previously.