The US treasury will auction off $18 billion and 30 year bonds at the top of the hour. The 6 month averages of the major components shows:
- Bid to cover 2.37X
- Tail -0.6 basis points
- DIrects (a measure of domestic demand) 17.4 basis points
- Indirects (a measure of international demand) 70.0%
- Dealers (they take the rest), 12.6%
The high yield at the last auction came in at 3.511%. The current 30 year yield is at 3.975%. Will the higher yields attract buyers despite the rising CPI inflation numbers today?