US treasury to auction 5-year notes at 1 PM ET

Due to the Fed meeting on Wednesday, the US treasuries frontloading the auctions. Earlier today, they sold $60 billion of two year notes at a high yield of 4.211% versus a WI level of 4.210%. The into cover was nearly average, with domestic buyers better than the six-month average but international buyers less than the six-month average.

For the five year notes, the auction will be compared to the six-month averages of major components:

• Tail +0.4 basis points
• Bid to cover 2.40X
• Direct 17.9%
• Indirects 69.3%
• Dealers 12.8%

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