US treasury to auction off $58 billion a three year notes at the top of the hour

The US treasury will auction off three year notes at the top the hour. The auction success or failure will be judged against the six-month averages of the major components:

• Tail 0.0 basis points
• Bid to cover 2.62X
• Directs (a measure of domestic demand) 16.8%
• Indirects (a measure of international demand) 67.5%
• Dealers 15.7%

The last auction high yield came in at 4.30%. The current three-year note is trading lower by around 40 basis points at 3.907%:

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