High yield 3.795%
WI level at the time of the auction 3.789%
Tail 0.6 basis points vs six-month averages -0.4 basis points
Bid to cover 2.52X versus six-month average of 2.65X
Directs 30.1% versus six-month average of 15.4%
Indirects 56.2% versus six-month averages 73.0%
Dealers 13.7% versus six-month average of 11.6%

Auction grade: C-

A shift of buying from international to domestic. The tail 0.6 basis points implies yields needed to move higher to attract enough demand for the liquid two year. Dealers were saddled with more than usual. The bid to cover was less than the six-month average.

With the US auctions, you have to be careful with regard to international demand given the trade tariffs situation. In theory, if the US runs a trade deficit, the USDs need to put to work somewhere. If not into US debt, yields could move higher.

However, if flow of funds is not into the US debt, where is it to go. A positive may be if the funds are going into US capital investment.

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