The U.S. Treasury will auction off a $43 billion of five-year notes that the top of the hour. The option is the 2nd of 3 coupon auctions this week. Yesterday they auctioned off to your notes with moderate demand.
The six-month averages of the major components of the 5 year note auctions shows:
- bid to cover 2.54X
- Tail, -0.7 basis points.
- Directs,, 17.9%.
- Indirects, 70.7%.
- Dealers 11.4%.
The last auction had a high yield of 4.019% with a tale of 0.7 basis points and a bid to cover of 2.52X