U.S. Treasury to auction off $42B of 10-year notes at the top of the hour

The U.S. Treasury will auction off a $42 billion of 10 year notes top of the hour. The six-month averages of the major components shows:

• High Yield: Previous 4.56%, six-auction average 4.276%
• Tail: Previous 3.1 basis points, six-auction average 0.9 basis points
• Bid-to-Cover Ratio: Previous 2.34x, six-auction average 2.49x
• Dealers: Previous 24.0%, six-auction average 16.9%
• Directs (a measure of domestic buyers): Previous 14.2%, six-auction average 17.0%
• Indirects (a measure of international buyers): Previous 61.8%, six-auction average 66.1%

The success or failure of the auction will be determined by how the actual auction results compare to the 6 month averages.

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