The US treasury will auction $37 billion a seven year notes at the top of the hour.
The auction is the final of the three note auctions this week. The two and five year note auctions did not go over very well as domestic and international buyers backed off. Both issues had high yields above the WI level at the time of the auction. The domestic and international demand was also less than the six-month averages.
What are the major component six-month averages for the seven year issue?
- Bid to cover 2.46X
- Tail 0.3 basis points.
- Directs (a measure of domestic demand) 21.8%
- Indirects (a measure of international demand) 64.2%
- Dealers (they take the rest) 13.9%