The US treasury is to auction off $39 billion of 10 year notes at the top of the hour. The auction results will be compared to the 6 month averages of the major components. Those averages show:
- Bid to cover 2.57X
- Tail -0.9 basis points.
- Directs (a measure of domestic demand) 16.3%.
- Indirects (a measure of international demand) 73.7%
- Dealers 10.0%
The current 10-year yield is trading at 4.113%, -1.4 basis points. The 3 year coupon auctions yesterday was met with solid demand with the bid to cover above the average, a negative tail and solid domestic demand. International demand was near average.
