The US treasury will auction off $35 billion 7 year notes at the top of the hour. The six-month averages of the major components shows:
- Bid to cover 2.46X
- Tail +0.9 basis points
- Directs (a measure of domestic demand) 18.8%
- Indirects (a measure of international demand) 66.6%
- Dealers (they take the rest) 14.5%
The 2 and 5-year note auction was met with strong demand from international traders with negative tail (-1.4 basis points on each) and above-average bid-to-cover numbers.