The US treasury will auction off $39 billion a 10 year notes at the top of the hour. Recall from last month this auction was not all that great with a tail of 3.1 basis points and a bid to cover below the six-month average.
Yesterday, the 3-year note auction was solid (I gave it a Grade of “A”). The tail was negative at -1.7 basis points the bid to cover was higher than average, and the support from international buyers was huge.
The component 6-month averages for the 10-year auctions, along with the previous results are outlined below:
High Yield:
Previous: 3.96%
Six-auction average: 4.314%
Tail:
Previous: 3.1bps
Six-auction average: 0.8bps
Bid-to-Cover:
Previous: 2.32x
Six-auction average: 2.48x
Dealers:
Previous: 17.9%
Six-auction average: 16.3%
Directs:
Previous: 16.0%
Six-auction average: 17.0%
Indirects:
Previous: 66.2%
Six-auction average: 66.7%
This article was written by Greg Michalowski at www.forexlive.com.
