US treasury auctions offer $48 billion of 3-year notes at a high yield of 4.701%.

<ul><li>High Yield: 4.701%. Previous rate was 4.74%, with a six-auction average of 4.372%.</li><li>Tail: -0.1 basis points. Previous 1.7 basis points (bps), with a six-auction average of -0.3 bps.</li><li>Bid-to-Cover: 2.67X. Previous 2.56X, with a six-auction average of 2.79X.</li><li>Directs (a measure of domestic demand): 19.13%. Previous 21.9%, with a six-auction average of 19.2%.</li><li>Indirects (a measure of international demand): 64.6%. Previous 56.0%, with a six-auction average of 65.3%.</li><li>Dealers (they take the rest): 16.26%. Previous 22.1%, with a six-auction average of 15.5%.</li></ul><p>Auction grade: C+</p><p>Compared to the last 3 year note auction, this was stellar, but overall it was modestly better than average.</p><p>The bid to cover was less than the 6 month average, the indirect (international demand) were marginally lower than the 6-month average. The Directs (domestic demand) were pretty much on par with the 6 month average. There was the smallest of details that -0.1 basis points.</p>

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