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?