The US Treasury will sell US$58 billion of the three notes at the end of the hour. The results will be compared to six-month averages of the main components of the aggregate demand measure. Key components and their six-month averages and widths:
- Tail: 6-month average 0.1 basis point. Previous auction 2.0 basis points
- Quote to cover: 6-month average 2.57X. Previous auction 2.50X
- Direct (a measure of domestic demand): 6-month average 18.7%. Previous auction 20.4%
- Indirect factors (a measure of international demand): 6-month average 63.0%. Previous 60.3%.
- Traders: 6-month average 18.3%. Previous auction 19.3%
In the last auction, the high yield reached 4.548%.
The current 3-year yield is 4.616%.
This article was written by Greg Michalowski at www.forexlive.com.