The 2nd of three coupon auctions this week will take place at the top of the hour when the US treasury auctions off $35 billion of 10-year notes (reopening). The key 6 month component averages it shows:

  • High Yield: Previously 4.289%, six-auction average 4.590%.
  • Tail: Previously 0.0 all bps, six-auction average 1.2bps.
  • Bid-to-Cover: Previously 2.52x, six-auction average 2.63x.
  • Dealers: Previously 13.7%, six-auction average 15.6%.
  • Directs (a measure of domestic demand): Previously 19.9%, six-auction average 19.6%.
  • Indirects (a measure of international demand): Previously 66.3%, six-auction average 64.8%.

Yesterday the 3-year note auction saw a +1.7 basis point tail. The bid to cover was much less than a 6-month average. Both domestic and international demand was lower than the average as well.

The final coupon auction will take place tomorrow when the treasury auctions offer 30-year bonds.