US treasury to auction off $47 billion of two-year notes at the top of the hour

The US treasury will auction off $47 billion of two-year notes at the top of the hour. The 6 month averages of the major components shows:

• Bid to cover, 2.59X
• Directs (a measure of domestic demand), 17.8%
• Indirects (a measure of international demand), 59.9%
• Dealers (dealers take the left overs), 22.3%

At the last auction the high yield came in at 2.585%. There was a tail of -1.1 basis points. The six-month average tail is 0.0 basis points. The current 2 year yield is at 2.485%.