U.S. Treasury to auction off $40 billion of 3 year notes at the top of the hour

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

• Bid to cover, 2.56X
• Directs (a measure of domestic demand), 18.6%.
• Indirects (a measure of international demand), 64.5%
• Dealers (they take the rest of the auction), 16.9%
• Average Tail, +0.3 basis points

The last auction at a high yield of 4.202% with a tale of 0.2 basis points and a bit the cover of 2.70X.

The auction will be compared to the when-issued (WI) level at the time of the auction cut off time (at 1 PM). The results of the auction will be release a minute or so later.