The U.S. Treasury will auction off $25 billion of 30 year bonds at the top of the hour. The auction results will be compared to the six month averages of the major components. Those six month averages show
- Tail: -0.5 basis points
- Bid to cover: 2.41X
- Dealers: 15.2%
- Directs: 18.4%
- Indirects 66.4%
The high yield last month came in at 4.405%. The yield is down to 4.288% currently after reaching a low of 3.999% (call it 4%) on Monday.
The 10-year note auction was not very good yesterday (I gave it a D-). All the major components were lower than the 6-month averages with a tail of -3.1 basis points.
