US treasury to auction off $18 billion of 30 year bonds at the top of the hour

<p>The US Treasury will complete its coupon auctions this week when the auction off $18 billion of 30-year bonds at the top of the hour.</p><p> On Tuesday they auctioned off three-year notes, and yesterday they auctioned off 10-year notes. Both were met with solid demand.</p><p>The six-month averages of the major components for this auction show:</p><ul><li>Bid to cover, 2.39X.</li><li>Tail, -0.2 basis points</li><li>Directs (a measure of domestic demand) 18.4%.</li><li>Indirects (a measure of international demand), 70.8%</li><li>Dealers (they take the rest) 10.8%.</li></ul><p>Last month the high yield came in at 3.908%. The bid to cover was 2.52X and the tail was -1.1. basis points. </p>

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