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US treasury to auction $40 billion of three-year notes at the top of the hour | Forexlive

The U.S. Treasury will auction off a $40 billion a three year notes at the top of the hour. The auction is the first of three notes/bond auctions this week. Tomorrow the treasury will auction off 10 year notes and on Thursday, they will auction off 30 year bonds (it’s actually 9 year and 10 month and 29 year and 10 month issues)

The six-month averages of the major components shows:

  • Tail, +0.1 basis points
  • Bid to cover, 2.6X
  • Directs (a measure of domestic demand) 18.7%
  • Indirects (a measure of international demand) 63.7%
  • Dealers (they take the rest) 19.9%

Last month, the high yield came in at 4.635%. The current three-year notice trading much lower at 3.8317%.