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

Bid to cover previous 6 auctions 2.47 times

The US treasury is auction of 40 billion of 3 year notes at the top of the hour. The amount is around 2 billion more than what is normally sold.

• Bid to cover over the last 6 auctions 2.47X. A higher number for the Bid to cover is indicative of stronger demand.
• Dealers take over the last 6 auctions 35.3%. A lower number is indicative of good demand
• Directs six-month average 16.0%. Direct bidders include non-primary dealers, hedge funds, pension funds, mutual funds, insurers, banks, governments and individuals.
• Indirects six-month average 48.9%. In direct bidders are generally foreign buyers

The WI (or When issued) yield is currently trading at 0.345% -0.330%. At 1 PM ET, the rate will be noted and the actual high yield will be compared to that WI level at the auction time to help determine demand. If the actual rate is higher than the WI level, the auction is not great. If the actual rate is lower, it is indicative of strong demand in the auction.