The US treasury will complete the coupon auctions for the week with the sale of $44 billion of 7-year notes at the top of the hour. The six-month averages of the major components of the auction show:
- Tail 0.1 basis points
- Bid to Cover 2.54X
- Directs (a measure of domestic demand) 17.3%
- Indirects (a measure of international demand) 70.3%
- Dealers (they take the rest) 12.4%
The yield last month came in at 3.668%. The current 7-year yield is much higher at 4.239%.
The 2 and the 5-year auctions yesterday were met with average/below average demand. WIll the buyers show up today?
