The US treasury will auction off $35B of 10 year bonds at the top of the hour.
The 6 month averages of key components shows:
- Bid to cover 2.39X
- Directs (a measure of domestic demand) 18.6%
- Indirects (a measure of international demand) 62.9%
- Dealers (Dealers take the rest) 18.5%
- Tail 1.6 bps
The 3 year auction did not go well yesterday with a tail of 4 basis points and a low bid to cover.
Will the buyers come in for this auction?
Last month the Bid to cover was 2.53X and the tail was -0.5 basis points.
