The US treasury will auction $50B of 7 year notes at 1 PM

The 6-month averages of the major components shows:

  • Bid to cover, 2.30X
  • Directs (a measure of domestic demand), 20.8%
  • Indirects (a measure of international demand), 61.1%
  • Dealers (they take the balance) 18.1%

The last auction went off at a high yield of 1.769% with a tail of -0.1%. The average tail over the last 6 auctions was +0.5 basis points.