Treasury auction
Fixed IncomeDefinition
Regular auction of new Treasury securities by the US Treasury. Conducted by competitive bidding from primary dealers (Goldman, JPM, Morgan Stanley etc.).
Auction metrics watched: bid-to-cover ratio (demand vs. supply), tail (the gap between when-issued and stop-out yield), indirect bidder share (foreign + central bank demand). "Bad auctions" (high tail, low bid-to-cover) push yields higher.
Auction metrics watched: bid-to-cover ratio (demand vs. supply), tail (the gap between when-issued and stop-out yield), indirect bidder share (foreign + central bank demand). "Bad auctions" (high tail, low bid-to-cover) push yields higher.