The U.S. Treasury will auction off $19 billion oof the 20 year bonds at the top of the hour. The six month averages of the major auction components shows:
- Bid to cover 2.39X
- Directs a measure of domestic demand 18.5%
- Indirects a measure of international demand 63.4%
- Dealers 18.1%
At the last auction the high yield came in at 2.21%. The tail was -1.5 basis points indicative of a strong auction. At the last auction, the international demand was above the six month average.
Also ahead later today will be the Fed meeting minutes from the January meeting. recall from last montth, the meeting minutes surprised the market in that it included a lot of talk about balance sheet reductions. That topic was not a point of emphasis in the FOMC statement nor the press conference.
