The second of 3 auctions will take place at 1 PM ET, when the treasury auctions off $39 billion of 10 year notes. The results will be compared to the six-month averages of the major components that show investor demand.
Here are a summarized view of 10-year auction history based on six-month averages of the major components:
High Yield:
- Previous: 4.166%
- Six-auction average: 4.285%
Tail:
- Previous: 0.9 basis points
- Six-auction average: 0.7 basis points
Bid-to-Cover Ratio:
- Previous: 2.51x
- Six-auction average: 2.52x
Dealers:
- Previous: 17.1%
- Six-auction average: 16.1%
Directs (a measure of domestic demand):
- Previous: 18.6%
- Six-auction average: 18.1%
Indirects (a measure of international demand:
- Previous: 64.3%
- Six-auction average: 65.9%