The U.S. Treasury will auction off $20 billion of 30 year bonds at the top of the hour. Going into the auction, US rates are lower but with the largest declines in the shorter end of the curve.
The 6 month averages of the major components shows:
- Bid to cover 2.31X
- Directs (a measure of domestic demand) 17.1%
- Indirects (a measure of international demand) 65.8%
- Dealers (they take the leftovers) 17.1%
The last auction yield was at 2.375%. The tail was -2.4 basis points (a great auction). The average tail is 1.0 bps over the last 6 months.
