The US Treasury will auction $52 billion of 5 year notes at the the top of the hour

<p>The U.S. Treasury will auction off $52 billion 5-year notes at the top of the hour.</p><p>Note that the coupon auctions are judged by investor demand. The 2 year note auction yesterday it was met with ok demand. There was no tail. </p><p>Of late the auctions have been sloppy with larger tails (the difference between the WI or When Issued level right before the auction vs the actual high yield). A positive tail is indicative of a weak demand.</p><p>The following are the previous and the 6 month averages of the major components:</p><ul><li>Tail: bps (prev. -1.2bps, six-auction avg. -0.4bps)</li><li>Bid-to-Cover: x (prev. 2.52x, six-auction avg. 2.99x)</li><li>Dealers: % (prev. 11.2%, six-auction avg. 12.3%)</li><li>Directs: (a measure of domestic demand) % (prev. 17.6%, six-auction avg. 18.8%)</li><li>Indirects (a measure of international demand): (prev. 71.1%, six-auction avg. 68.9%)</li></ul>

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