The US treasury to auction off $21 billion of 30 year bonds at the top of the hour | Forexlive
On Tuesday, the U.S. Treasury auctioned off 3 year notes to tepid demand. That auction may have been influenced by the Q&A session with Fed Chair Powell which took place before and after the auction deadline at 1 PM ET. Demand was light. There was a +4 bp positive tail.
Yesterday, international buyers came in and bought nearly 80% of the auction. The tail was -3 basis points.
Today is the deciding auction for the week. What are the six-month averages for the major components:
- Bid the cover 2.37X
- Tail -0.4 bps
- Directs (a measure of domestic demand) 19.0%
- Indirects (a measure of international demand) 69.7%
- Dealers (they take the balance) 11.3%
The last option at a bid the cover of 2.45X. The tail was -2.4 basis point with the Indirect’s taking 74.6%.