The US treasury will auction off $52 billion or to year notes at the top of the hour. The six month averages of the recent components for that auction shows:
- bid to cover 2.56X
- DIrects (a measure of domestic demand), 17.7%
- Indirects (a measure of international demand), 56.1%
- Dealers (the dealers take the balance) 26.2%
The last auction at a high yield of 0.99% with a tail of -1.2 basis points. The current two-year is much higher at 1.535% as the expectations for Fed tightenings in 2022 increased.
