The US treasury will auction off $32 billion of 10-year notes at the top of the hour. The 6-month averages of the major auction components for the issue show:
- Bid to cover 2.38X
- Tail 1.8 basis points
- Directs (a measure of domestic demand) 20.0%
- Indirects (a measure of international demand) 61.8%
- Dealers (they take the rest) 18.2%
At the last auction, the high yield came in at 3.791%. The tail was 1.5 basis points and the bid the cover was 2.36X.