U.S. Treasury to auction off $35 billion of 7 year notes at the top of the hour

<p>The U.S. Treasury will auction off $35 billion of 7 your notes at the top of the hour. Below are the last and the six-month averages of the major components for comparison.</p><ul><li>High Yield: previously at 3.839%, with a six-auction average of 3.739%</li><li>Tail: previously at -1.1bps, with a six-auction average of -0.0bps</li><li>Bid-to-Cover: previously at 2.65x, with a six-auction average of 2.54x</li><li>Dealers: previously at 8.1%, with a six-auction average of 11.4%</li><li>Directs (a measure of domestic demand): previously at 16.6%, with a six-auction average of 19.0%</li><li>Indirects (a measure of international demand): previously at 75.3%, with a six-auction average of 69.6%</li></ul><p>Yields are higher today as a result of the better US data. Will that attract buyers at higher yields? Or will the stronger data keep investors on the sidelines? We will find out soon.</p><ul><li>2-year yield is at 4.913%, up 8.7 basis points</li><li>5-year yield is at 4.187% up 10.1 basis points</li><li>10-year yield is at 3.9483% up 9.7 basis points</li><li>30-year yield is at 4.001% up 7.4 base pairs</li></ul>

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