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US treasury to auction off $35 billion of a 7 year note at the top of the hour | Forexlive

The U.S. Treasury will auction off a $35 billion of seven-year notes at the top of the hour. The six-month average of the major components shows:

  • Bid to cover 2.46X
  • Tail +0.9 basis points
  • Directs (a measure of domestic demand) 19.1%
  • Indirects (a measure of international demand) 66.5%
  • Dealers (they take the balance) 14.4%

At the last auction the high-yield came in at 3.626% with a 1.1 basis point tail. The average tail of 0.9 basis points over the last 6 months suggests that demand is not all that great for this issue.