The following is from the March 1991 monthly report published by Blackstone Fi- nancial Management: The Treasury also brought $34.5 billion in new securities to the market in February as part of the normal quarterly refunding.... the auctions went slightly better than expected given the significant size and the uncertainties surrounding the duration of the war. The 3-year was issued at a 6.98% aver- age yield, the 10-year at a 7.85% average yield, and the 30-year at a 7.98% average yield. All bids were accepted at the average yield or better (i.c., with no tail), indicating ample demand for the securities. What is the average yield and the tail? Why does the absence of a tail indicate ample demand for the Treasuries auctioned?

AppendixLO1