The US treasury is to auction off $12 B of 20 year bonds at the top of the hour. The current yield is around 3.72%.
The 6 month averages of the major components shows:
- Tail -0.5 bps
- Bid to cover, 2.57X
- Directs (a measure of domestic demand), 17.2%
- Indirects (a measure of international demand), 71.9%
- Dealers (they get the rest) 10.8%
The high yield at the last auction was at 3.935% with a tail of -1.3 bps. The directs and indirects were near 6 month averages.
