The U.S. Treasury will auction off $70 billion of five-year note at the top of the hour. The success or failure of the auction will be dependent on the components and their relationship to the six month averages. More specifically:
Tail 0.5 basis pointsBid to Cover 2.36XDirects 17.9%Indirects 65.8%Dealers 15.3%
The last option high-yield was at 4.331% which also had a negative tail of -0.4 basis points. THe Bid to cover was near the average at 2.35X
This article was written by Greg Michalowski at www.forexlive.com.
