US treasury to auction off $58 billion of three notes at the top of the hour

The US treasury will auction off the $58 billion of 3-year notes at the top of the hour. At the auction last month, the high yield came in at 3.44%. The current 3 year yield is up at 3.871% despite a 50 basis point from the federal reserve after last interest-rate decision.

With yields sharply higher will there be added interest from domestic/foreign investors?. The results of the auction will be compared to the six-month averages of the major components. They show:

• Bid to cover: 3.57X
• Tail: 0.0 bps
• Directs (domestic demand): 18.1%
• Indirects (international demand): 66.1%
• Dealer: 15.8%

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