The U.S. Treasury will auction off $32 billion of 10-year note at the top of the hour. The treasury has already auctioned off $40 billion of the 3 notes earlier today with domestic demand solid, but international demand was less than average.
Below were the results from the 3-year auction:
- High-yield 4.202% versus WI level of 4.20%;
- Tails by 0.2bps versus the 6-month average of +0.3 basis points.
- Bid-to-Cover: 2.70x versus 6 month average of 2.56x .
- Dealers: 16.7% versus a 6-month average of 17.1% .
- Directs: 21.7% versus a 6-month average of 18.3% .
- Indirects: 61.5% versus 6 with an average of 64.6%
For the 10-year auction, the six-month averages of the major components shows
- Tail: 0.9bps
- Bid-to-Cover: 2.44x.
- Dealers: 15.0%
- Directs (a measure of domestic demand): 18.5%)
- Indirects (a measure of international demand): 66.4%
