US treasury to auction off $40 billion of 3 notes at the top of the hour

The U.S. Treasury will auction off $40 billion a 3 or notes at the top of the hour. The six-month averages of the major components shows:

• Bid to cover 2.60X. The bid Bid In a market, a bid is a price at which a buyer is willing to purchase a specific security, such as a currency, stock or bond. It is the highest price that a buyer is willing to pay for a security. Bids are typically made by market participants such as investors and traders, and are usually entered into an electronic order book or trading platform.When a market participant is looking to buy a security, they will typically place a bid at a certain price. If there are multiple buyers looking to pur In a market, a bid is a price at which a buyer is willing to purchase a specific security, such as a currency, stock or bond. It is the highest price that a buyer is willing to pay for a security. Bids are typically made by market participants such as investors and traders, and are usually entered into an electronic order book or trading platform.When a market participant is looking to buy a security, they will typically place a bid at a certain price. If there are multiple buyers looking to pur Read this Term to cover measures the number of bids vs the auction amount. With 40 billion being auctioned, a bid to cover 2.6 would imply total bids of $104B (2.6 x $40B = $104B).
• Tail -0.1 basis points. Tail compares the high yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term vs the WI level at the auction cutoff time. The WI level is the trading yield of pre-auctioned issues.
• Directs (a measure of domestic demand) 18.9%
• Indirects (a measure of international demand) 62.7%
• Dealers (they take the balance) 18.4%

The last auction came in at a high yield of 3.81%. The yield is marginally lower from that level.