US treasury to auction off $44 billion a seven year notes at the top of the hour

The US treasury will complete the coupon auctions for the week with the sale of $44 billion of 7-year notes at the top of the hour. The six-month averages of the major components of the auction show:

• Tail 0.1 basis points
• Bid to Cover 2.54X
• Directs (a measure of domestic demand) 17.3%
• Indirects (a measure of international demand) 70.3%
• Dealers (they take the rest) 12.4%

The yield last month came in at 3.668%. The current 7-year yield is much higher at 4.239%.

The 2 and the 5-year auctions yesterday were met with average/below average demand. WIll the buyers show up today?

This article was written by Greg Michalowski at www.forexlive.com.