U.S. Treasury auctions $52 billion of three-year notes at a high yield of 4.105%

<ul><li>High-yield</li><li>WI level at the time of the auction 4.116%</li><li>tail -1.1 basis points versus 6-month average of 0.4 basis points</li><li>Bid to cover 2.67X vs 6-month average of 2.70X </li><li>Dealers 17.9% versus 6-month average of 17.7% </li><li>Directs 16.8% versus 6-month average of 20.1%</li><li>Indirect 65.3% versus 6-month average of 62.3%</li></ul><p>Highlights:</p><p>The three-year note auction was much better than last month when the tail was 1.7 basis points. For this auction, the tail came in at -1.1 basis points. The baby cover was close to the six-month average. Although domestic demand was light at 16.8 versus 20.1 for the six-month average, international demand was strong at 65.3% versus 62.3% six-month average. Last month the international demand was a very weak 52.1%. </p><p>Auction Grade: B</p><p>The 2-year yield is at 4.364% +1.9 basis points. The 10 year yield is at 4.007% +0.6 basis points.</p><p>Dow Industrial Average is still down -175 points or -0.47%. The S&amp;P index is still lower by -4.6 points or -0.10%, but the Nasdaq index is up 31.36 points or 0.21%</p>

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