The first of 3 coupon auctions for the week will start today at 1 PM when the US treasury auctions off $58 billion of 3-year notes. The treasury will auction off 10-year notes tomorrow and 30-year bonds on Thursday.
The note auction success (or failure) will be judged by the results vs the 6 month averages of the major components.
Last month the 3 year auction went near the averages.
High Yield:
Previous: 3.81%
Six-auction average: 4.3m
Tail:
Previous: -0.2tps
Six-auction average: 0.1bps
Bid-to-Cover:
Previous: 2.55x
Six-auction average: 2.56x
Dealers:
Previous: 15.4%
Six-auction average: 16.4%
Directs (a measure of domestic demand):
Previous: 20.3%
Six-auction average: 18.8%
Indirects (a measure of international demand):
Previous: 64.4%
Six-auction average: 64.7%
