U.S. Treasury to auction off 30-year bonds at the top of the hour

The U.S. Treasury will auction off $22.0 billion a 30-year bond at the top of the hour. The six-month averages of the major components shows:

• Bid to cover 2.38X
• Tail 0.8 basis points
• Directs (a measure of domestic demand) 16.4%.
• Indirects (a measure of international demand) 66.9%.
• Dealers 16.7%

The high yield at the last auction last month was 4.331% with a tail of -2.1 basis points and a bid to cover of 2.47X.

The current 30 year yield is trading at 4.661%.

Yesterday the 10-year auction was not met with strong demand. The Tail was 3.1 basis points with a lower than the average bid to cover. The domestic and international demand was also less than the six-month averages.