The U.S. Treasury will auction off $22 billion and 30 year bonds at the top of the hour. The averages of the key component pieces over the last six trading auctions shows:

  • Bid to cover 2.29X
  • Directs (a measure of domestic demand),17.6%.
  • Indirects (a measure of international demand), 64.2%
  • Dealers (they get the left overs), 18.2%

The last auction came in at a high yield of 1.94% with a massive tail of 5.2 basis points.

The three year and 10 year note auctions on Tuesday and Wednesday were met with average demand. What will the 30 year auction bring?

The current 30 year bond trades at a rate of about 1.87%.