At the top of the hour, the US treasury will auction off $39 billion of 10-year notes. It is the second of three coupon auctions this week. Tomorrow the treasury will auction off 30-year bonds.
The three-year note auction yesterday was met with average demand with domestic buyers marginally higher than their six-month average and international buyers marginally lower than their six-month average. The price was just 0.1 bps from the WI level at the time of the auction. The Bid to cover was near the 6-month average.
For the auction today, the six-month averages of the major components shows:
Bid to cover 2.55XTail -0.2 bpsDirects (a measure of domestic demand) 16.1%INdifects (a measure of international demand) 70.6%Dealers (they take the rest). 13.3%
This article was written by Greg Michalowski at www.forexlive.com.
