The start of a key auction cycle this week.
The US treasury will auction off $58 billion of three year notes at the top of the hour. The auction will kickoff the refunding this week that continues tomorrow with the sale of $41 billion of 10 year notes and the sale of $27 billion of 30 year bonds on Thursday.
The recent six month averages of some of the auction components:
- Bid to cover, 2.45X
- Dealers, 31.1%
- Directs, (indicative of domestic demand) 17.4%
- Indirect (indicative of foreign demand) 51.4%
The last auction came in a high yield of 0.426%, with a tail of 0.2 basis point.