U.S. Treasury auctions off $54 billion of 3-year notes at a high yield of 4.169%

<ul><li>High Yield: 4.169% %, prev. 4.105%</li><li>WI level at the time of the auction 4.177%</li><li>Tail: -0.8 bps, Previous -1.1bps, six-auction avg. 0.5bps</li><li>Bid-to-Cover: 2.58X, Previous 2.67x, six-auction avg. 2.66x</li><li>Dealers: 15.71%, Previous 17.9%, six-auction avg. 18.8%</li><li>Directs: 18.34%, Previous 16.8%, six-auction avg. 19.6%</li><li>Indirects: 65.95% Previous 65.3%, six-auction avg. 61.6%</li></ul><p>Auction grade: B</p><p>Highlights. The first coupon auction of the week for the U.S. Treasury is the three year note. Demand was solid with a -0.8 basis point tail. The bid to cover was a bit late compared to the six month average (2.58x versus 2.66x). The strongest demand was from international investors who took down 65.95%, higher than the 61.6% six month average. The demand from the direct bidders was marginally lighter than the average.</p><p>A solid first auction despite the declines in yields today. </p>

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