SMRA's John Canavan said today's......>

US TSYS/BILLS: SMRA's John Canavan said today's "four-week bill auction finds

strong demand. This morning's $50.0 billion 4-week bill auction went very well,"

he said. 

- "Despite the large size, there was a large and aggressive bid, resulting in a

stop firmly through the 11:30am bid side and a strong bid/cover," he said. "The

auction size was $5.0 billion larger than last week's 4-week bill auction. The

auction stopped at 1.245%, with 55.60% of the bids allotted at the high yield.

The WI was bid around 1.260% at the 11:30AM bidding deadline. The bid/cover was

3.29, compared to 3.09 last week and an average of 3.04 for the three similarly

sized $50 billion auctions in late October/early November. There were $527.0

million in non-comps and no FIMA non-comps."

- "Indirect bidders took down 51.8% of the auction this morning, and Direct

bidders took down 9.7%," he added. "The average Indirect bidder takedown was

30.8% over the past three months, and the average Direct bidder takedown has

been 8.8%."