The U.S. Treasury will auction off $13 billion of 20 year bonds at 1 PM ET. The six-month averages of the major components will be compared to the actual results to determine success or failure of the auction:
Tail: 0.1 basis pointsBid to cover: 2.60XDirects (a measure of domestic demand): 18.9%Indirects (a measure of international demand) 67.8%Dealers: 13.3%
last week the treasury auctioned off 3, 10, and 30 year coupon issues. The three year note option was met with tepid demand but the 10 and 30 year auctions were solid (grades of A-) propelled by strong international demand.
This article was written by Greg Michalowski at www.forexlive.com.
