The U.S. Treasury is starting its refunding this week with the sale of $50 billion of three year notes at the top of the hour.
The six month averages for some of the key components shows:
- Bid to cover 2.43X
- Directs (a measure of domestic demand) 18.0%
- Indirects (a measure of international demand) 54.6%
- Dealers (they get the scraps) 27.4%.
At the last auction, the demand was a strong with a tail of -0.4 basis points and strong international demand (61.6% versus six month average of 54.6%). The bid to cover was also better than the average.
