The US treasury will auction off $70 billion of 5-year notes at the top of the hour.
Yesterday, the first of three coupon auctions this week saw strong investor demand for the 2-year notes especially from overseas investors. Indirect buyers were awarded 85% of the auction. To get that amount, they bid -1.1 basis point through the WI level at the time of the auction (which is indicative of strong demand).
Today’s 5- year note auction will be compared to the six-month averages of the major components.
- Tail: 0.1 basis points
- Bid to cover: 2.40X
- Directs (domestic demand): 19.2%
- Indirects (international demand): 68.6%
- Dealers: 12.3%