The US treasury will auction off $37 billion of 10 year notes at 1 PM ET

<p>The 2nd of three coupon auctions will take place at 1 PM ET (with results announced shortly thereafter) when the US treasury auctions all $37 million of 10-year notes. Tomorrow, the U.S. Treasury will auction off 30-year bonds.</p><p>The auction results will be evaluated against its six-month averages of the major components. The last auction and the six-month averages shows:</p><ul><li>High Yield: Previous was 4.296%, with a six-auction average of 4.262%.</li><li>Tail (the difference between the high yield and the WI level at the time of the auction): Previously at 1.4 basis points, six-auction average is 0.8 basis points.</li><li>Bid-to-Cover Ratio: Previous ratio was 2.53x, six-auction average stands at 2.51x.</li><li>Dealers' Participation: Previous was 17.3%, six-auction average is at 14.5%.</li><li>Direct Bidders (a measure of domestic demand): Previously at 18.9%, close to the six-auction average of 18.8%.</li><li>Indirect Bidders (a measure of international demand): Previously at 63.8%, with a six-auction average of 66.7%.</li></ul>

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