The US treasury will auction off $40 billion of 3 year notes at the top of the hour. The auction is the first of the three this week in the note/bond sector. Tomorrow the treasurer will auction off 10 year notes and on Thursday, they will auction off 30 year bonds.
The six-month averages of major components shows:
- Bid to cover 2.52X
- Tail, +0.1 basis point
- Directs (a proxy for domestic demand) 19.3%
- Indirects (a proxy for international demand) 59.2%
The last auction came in with a high yield of 4.093%, and a tail of -0.3 basis points.
