The 2nd of three coupon auctions will take place at 1 PM ET (with results announced shortly thereafter) when the US treasury auctions all $37 million of 10-year notes. Tomorrow, the U.S. Treasury will auction off 30-year bonds.
The auction results will be evaluated against its six-month averages of the major components. The last auction and the six-month averages shows:
- High Yield: Previous was 4.296%, with a six-auction average of 4.262%.
- Tail (the difference between the high yield and the WI level at the time of the auction): Previously at 1.4 basis points, six-auction average is 0.8 basis points.
- Bid-to-Cover Ratio: Previous ratio was 2.53x, six-auction average stands at 2.51x.
- Dealers' Participation: Previous was 17.3%, six-auction average is at 14.5%.
- Direct Bidders (a measure of domestic demand): Previously at 18.9%, close to the six-auction average of 18.8%.
- Indirect Bidders (a measure of international demand): Previously at 63.8%, with a six-auction average of 66.7%.
