The US treasury to auction off $24 billion of 30 year notes at the top of the hour

<p>The U.S. Treasury will auction off $24 billion of 30 year bonds at the top of the hour.</p><p>Below are the key components of the auction, along with the 6-month averages of the components. Traders – and the market – will judge the success or failure of the auction versus the 6-month averages:</p><ul><li>High Yield: 6-auction average 4.155%, prev. 4.837%</li><li>Tail: 6-auction average 0.9bps, prev. 3.7bps</li><li>Bid-to-Cover: 6-auction avg. 2.44x, prev. 2.35x</li><li>Dealers: 6-auction avg. 12.7%, prev. 18.2%</li><li>Directs (a measure of domestic demand): 6-auction avg. 18.6%, prev. 16.7%</li><li>Indirects (a measure of international demand) : 6-auction avg. 68.6%, prev. 65.1%</li></ul><p>The treasury auctioned off a 3 and a 10 year notes on Tuesday and Wednesday respectively. The auctions were met with average demand.</p>

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