The U.S. Treasury will auction off $42 billion of 10 year notes at 1 PM ET. The results of the auction will be compared to the 6 month averages of the major components, and could impact the price of treasuries/yields. Stronger demand leads to lower yields generally speaking.
The six-month averages of the major components show:
- Tail -0.3 basis points
- Bid to cover 2.54X
- Directs (domestic buyers) 20.1%
- Indirects (international buyers) 70.2%
- Dealers (they fill in the difference) 9.7%.
US yields are lower after the market was close yesterday in observance of Veterans Day:
- 2-year yield 3.559%, -3.1 basis points
- 5 year yield 3.659%, -5.1 basis points
- 10 year yield 4.057%, -5.0 basis points
- 30 year yield 4.653%, -4.9 basis points
