US treasury to auction off $39 billion of 10 year notes at the top of the hour

The US treasury will auction off $39 billion a 10 year notes at the top of the hour. Recall from last month this auction was not all that great with a tail of 3.1 basis points and a bid to cover below the six-month average.

Yesterday, the 3-year note auction was solid (I gave it a Grade of “A”). The tail was negative at -1.7 basis points the bid to cover was higher than average, and the support from international buyers was huge.

The component 6-month averages for the 10-year auctions, along with the previous results are outlined below:

High Yield:

Previous: 3.96%

Six-auction average: 4.314%

Tail:

Previous: 3.1bps

Six-auction average: 0.8bps

Bid-to-Cover:

Previous: 2.32x

Six-auction average: 2.48x

Dealers:

Previous: 17.9%

Six-auction average: 16.3%

Directs:

Previous: 16.0%

Six-auction average: 17.0%

Indirects:

Previous: 66.2%

Six-auction average: 66.7%

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