The US treasury will auction off $51 billion of 5 year notes at 1 PM ET. The two year note auction at 11:30 AM was met with somewhat tepid demand. The major components of the five year auction over the last six months shows:
- Bid to cover 2.44x
- Directs (a measure of domestic demand) 17.2%
- Indirect (a measure of international demand) 63.0%
- Dealers, 19.8%
The last auction at a high yield of 1.88%. The WI 2.553% at the time of the auction.
