The US treasury will auction off the $58 billion of 3-year notes at the top of the hour. At the auction last month, the high yield came in at 3.44%. The current 3 year yield is up at 3.871% despite a 50 basis point from the federal reserve after last interest-rate decision.
With yields sharply higher will there be added interest from domestic/foreign investors?. The results of the auction will be compared to the six-month averages of the major components. They show:
- Bid to cover: 3.57X
- Tail: 0.0 bps
- Directs (domestic demand): 18.1%
- Indirects (international demand): 66.1%
- Dealer: 15.8%
