The US treasury will sell $17 billion of 20 year bonds at the top of the hour. The 6 month averages of some of the key components shows:

  • Bid to cover 2.56X
  • Directs (a measure of domestic demand), 19.9%
  • Indirects (a measure of international demand), 65.7%
  • Dealers (they take the balance), 14.3%

The last auction high  yield  came in at 3.095%. That is well above the six-month average of 2.393%.

The tail was -3.0 basis points vs the six-month average of -0.4 basis points. There was strong demand last month led by overseas buyers who purchased 75.9% of the issue.