U.S. Treasury to auction off a $42 billion of reopened 2 year notes at 1 PM ET

<p>The U.S. Treasury will auction off a $42 billion of reopened to your notes at the top of the hour. The major component averages over the last 6 months show:</p><ul><li>Bid-to-Cover: 2.71x</li><li>Tail: -0.2bps</li><li>
Directs (a measure of domestic demand) 20.0%</li><li>Indirect (a measure of domestic demand) 61.9%</li><li>Dealers:(they take the rest) 18.1%)</li></ul><p>The last auction high yield came in at 4.3% with a tail of -1.5 bps. The Bid-to- cover was indicative of a strong demand at 2.90X. Two-year yields are higher now near 4.75% as a more hawkish fed is now expected.</p><p>The two-year note auction is the first of three note auctions this week. Tomorrow, the treasury will auction off $43 billion of the 5-year notes. On Wednesday they will auction off $35 billion of 7 year notes.</p>

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