The U.S. Treasury will auction off 2-year notes at the top of the hour. The auction is the 1st of 3 coupon auctions this week. Tomorrow the treasury will auction off of 5 year notes and on Thursday 7 year notes.
Below are a review of the major components that the market will compare the actual results to the 6 month averages to determine strength or weakness from the buyers today:
- High Yield: 6 month average: 3.516%
- Tail: 6 month average: -0.2 bps
- Bid-to-Cover: 6 month average: 2.62x
- Dealers: 6 month average: 10.7%
- Directs (a measure of domestic demand): 6 month average: 32.1%
- Indirects (a measure of international demand): 6 month average: 57.2%
