The US treasury will show $68 billion of 2-year notes at 1 PM ET. The 2-year note auction is the first of three coupon auctions this week. The treasury will auction five and seven-year notes on Tuesday and Wednesday respectively before the Thanksgiving holiday on Thursday.
Last week the US treasury auctioned off 20-year bonds. That auction was poor with a three basis point tail which was well above the six-month average. The dealers were left with some 22% of the auction amount.
The six-month averages of the major components for the two-year note shows:
Bid to cover 2.62XTail -0.2 bpsDirects (domestic demand), 20.6%Indirects (international demand) 65.8%Dealers: 13.6%
This article was written by Greg Michalowski at www.forexlive.com.
