US treasury to auction $69 billion of two-year notes at the top of the hour

The U.S. Treasury is to auction $69B of 2-year notes at the top of the hour. The markets will measure the success or failure of the auction versus the 6-month averages of the major components.

Below is a summary of the components, the previous auction results and 6-month averages:

• High Yield: Prev. 4.595%, six-auction average 4.651%
• Tail (the difference between the high yield and the WI level at the time of the auction): Prev. 0.5 bps, six-auction avg. 0.2 bps
• Bid-to-Cover (number of bids vs the auction amount): Prev. 2.62x, six-auction avg. 2.59x
• Dealers: Prev. 13.4%, six-auction avg. 16.3%
• Directs (a measure of domestic buyers/demand): Prev. 20.9%, six-auction avg. 20.5%
• Indirects (a measure of international buyers/demand): Prev. 65.8%, six-auction avg. 62.9%

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