US treasury to sell $58B of 3-year notes at the top of the hour

The first of 3 coupon auctions for the week will start today at 1 PM when the US treasury auctions off $58 billion of 3-year notes. The treasury will auction off 10-year notes tomorrow and 30-year bonds on Thursday.

The note auction success (or failure) will be judged by the results vs the 6 month averages of the major components.

Last month the 3 year auction went near the averages.

• High Yield:

• Previous: 3.81%

• Six-auction average: 4.3m

• Tail:

• Previous: -0.2tps

• Six-auction average: 0.1bps

• Bid-to-Cover:

• Previous: 2.55x

• Six-auction average: 2.56x

• Dealers:

• Previous: 15.4%

• Six-auction average: 16.4%

• Directs (a measure of domestic demand):

• Previous: 20.3%

• Six-auction average: 18.8%

• Indirects (a measure of international demand):

• Previous: 64.4%

• Six-auction average: 64.7%

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