The U.S. Treasury is to auction off $20 billion of 30 year bonds at the top of the hour. Six month averages of the major components shows:
- Bid to cover 2.32X
- Directs (a measure of domestic demand), 17.3%
- Indirects (a measure of international demand), 65.5%
- Dealers (dealers tend to take the balance of supply and distribute), 17.2%
Last month the high yield came in at 2.34% with a tail of 1.1bp. The six month average of tales to the auction come in at 1.1 basis points as well.
The three and 10 year note auctions earlier this week were met with tepid demand as investors are unsure of the interest rate environment given the Ukrainian invasion.
