The U.S. Treasury is to auction off $39 billion of 7-year notes at the top of the hour. Yesterday. the treasury auctioned off 2 and 5-year notes. The 2-year auction was met with lower demand. The 5-year note auction was a little better but still not all that great.
Details of the last auction and the six-month averages of the major components shows:
- High Yield: Previous 4.908%, six-auction average 4.258%.
- Tail: Previous -0.2 basis points, six-auction average -0.4 basis points.
- Bid-to-Cover Ratio: Previous 2.7 times, six-auction average 2.6 times.
- Dealers: Previous 11.0%, six-auction average 11.4%.
- Direct Bidders (a measure of domestic US demand): Previous 18.4%, six-auction average 17.2%.
- Indirect Bidders (a measure of international demand): Previous 70.6%, six-auction average 71.5%
The markets will use the data to gauge investor demand from both domestic and international participants.
