The US treasury will sell $44 billion of 3 year notes at the top of the hour. The major average of the component pieces of the last 6 auctions shows:
- Bid to cover 2.47X
- Directs (a measure of domestic demand) 16.5%
- Indirects (a measure of international demand), 59.0%
- Dealers (they take the rest), 24.8%
At the last auction, the high yield came in at 2.809% with a tail of -0.3 basis points to the WI (when-issued) level at the time of the auction. That compared to an average tail of 0.0 basis points at the previous 6 auctions.
