The U.S. Treasury will auction off $40 billion of 3 notes at the top of the hour. The six-month averages of the major components shows:
- Bid to cover, 2.56X
- Directs (a measure of domestic demand), 18.6%.
- Indirects (a measure of international demand), 64.5%
- Dealers (they take the rest of the auction), 16.9%
- Average Tail, +0.3 basis points
The last auction at a high yield of 4.202% with a tale of 0.2 basis points and a bit the cover of 2.70X.
The auction will be compared to the when-issued (WI) level at the time of the auction cut off time (at 1 PM). The results of the auction will be release a minute or so later.