The U.S. Treasury to auction off $52 billion of three-year notes at the top of the hour

<p>The U.S. Treasury will auction off a $52 billion of three-year notes at the top of the hour. The auction is the first of three coupon options this week. Tomorrow the treasury will auction off 10-year bonds and on Thursday they will auction off 30-year bonds:</p><p>The major component details from the last auction along with the six-month averages are listed below. Traders will interpret the demand by comparing the actual details of the auction with the six month averages.</p><ul><li>High Yield: Previous auction 4.49%, compared to a six-auction average of 4.587%.</li><li>Tail: Previous auction saw a high 1.7 basis points (bps) tail against a six-auction average of 0.4 bps.</li><li>Bid-to-Cover Ratio: Previous auction at 2.42 times, which was well below the six-auction average of 2.7 times.</li><li>Dealers' Participation: Previous auction the Dealers took 26.2% in the latest auction, higher than the six-auction average of 17.7%.</li><li>Direct Bidders (proxy for domestic buyers): Previous auction saw domestic participation at 21.7%, slightly above the six-auction average of 20.1%.</li><li>Indirect Bidders (proxy for international buyers) : Previous auction international buyers decreased to 52.1%, below the six-auction average of 62.3%.</li></ul><p>2-year yield is at 4.372% up 2.8 basis points. The 10-year yield is trading at 4.009% up 0.8 basis points</p><p>The WI is trading at 4.116%.</p>

This article was written by Greg Michalowski at www.forexlive.com.