U.S. Treasury to auction off $15 billion of 20 year bonds at the top of the hour. The six-month average of the major components shows:
- Bid to cover 2.65X
- Tail -1.0 basis points
- Directs (a measure of domestic demand), 18.0%
- Indirects (a measure of international demand), 72.5%
- Dealers (they take the rest), 9.5%
The last auction had a high yield of 3.92% and a tail of 0.2 basis points. The bid to cover it was near the average at 2.66X