The U.S. Treasury will auction off $58 billion of 3-notes at the top of the hour. The results will be compared to the six month averages of the major components to gauge overall demand. The major components and their six-month averages and shows:
- Tail: 6- month average 0.1 basis points. Previous auction 2.0 basis points
- Bid to cover: 6-month average 2.57X. Previous auction 2.50X
- Direct (a measure of domestic demand): 6-month average 18.7%. Previous auction 20.4%
- Indirects (a measure of international demand): 6-month average 63.0%. Previous 60.3%.
- Dealers: 6-month average 18.3%. Previous auction 19.3%
At the last auction, the high-yield came in at 4.548%.
The current 3-year yield is at 4.616%.
