U.S. Treasury to auction off $34 billion of 10 year notes at the top of the hour

The U.S. Treasury will auction off $34 billion of 10 year notes at the top of the hour. The six month average of the major components of prior auctions shows:

• Bid to cover 2.50X
• Directs (a measure of domestic demand) 16.5%
• Indirects (a measure of international demand) 70.9%
• Dealers (they take the rest) 12.7%

The last auction came in at a high yield of 1.920% with a tail of 0.3 basis points. The six month averages -0.2 basis points.