The U.S. Treasury will auction off $58 billion of 3-year notes at the top of the hour. The components of the auction compared to their six-month averages, will determine success or failure.
Bid to cover six-month average is 2.57XTail six-month average is 0.0 basis pointsDirects (a measure of domestic demand) six-month average is 18.5%Indirects (a measure of international demand) six-month average is 65.0%Dealers six-month average is 16.5%
The high yield at the last auction came in at 4.399%. The current 3-year yield is at 3.829% after the sharp fall on the back of expectations for lower US growth and the expectations for the Fed to start to ease credit conditions in September.
This article was written by Greg Michalowski at www.forexlive.com.
