U.S. Treasury to auction off $40 billion of 3 year notes at the top of the hour

<p>The U.S. Treasury will auction off $40 billion of 3 notes at the top of the hour. The six-month averages of the major components shows:</p><ul><li>Bid to cover, 2.56X</li><li>Directs (a measure of domestic demand), 18.6%.</li><li>Indirects (a measure of international demand), 64.5%</li><li>Dealers (they take the rest of the auction), 16.9%</li><li>Average Tail, +0.3 basis points</li></ul><p>The last auction at a high yield of 4.202% with a tale of 0.2 basis points and a bit the cover of 2.70X.</p><p>The auction will be compared to the when-issued (WI) level at the time of the auction cut off time (at 1 PM). The results of the auction will be release a minute or so later. </p>

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