At the top of the hour, the US treasury will auction off $39 billion of 10-year notes. This is the second of three coupon auctions this week. Tomorrow the Treasury will be selling 30-year bonds.
Yesterday's three-year note auction was met with average demand with domestic buyers slightly above their six-month average and international buyers slightly below their six-month average. The price was just 0.1 bps from the WI rate at the time of the auction. The claim for cover was close to the average for 6 months.
For today's auction, the six-month averages of the main components show:
- Apply for 2.55X coverage
- Tail -0.2 bps
- Lead (a measure of domestic demand) 16.1%
- Indifects (a measure of international demand) 70.6%
- Sellers (they take the rest). 13.3%
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