The US Treasury will auction $69 billion worth of 2-year bonds at any hour. Markets will measure the success or failure of the auction against the 6-month averages of the major components.
Below is a summary of components, previous auction results and 6-month averages:
- High efficiency: Previous. 4.595%, average over six auctions 4.651%
- Tail (the difference between the high yield and the WI level at the time of the auction): Previous. 0.5 bps, average over six auctions. 0.2 basis points
- Bid-to-Cover (number of bids compared to the amount of the auction): Prev. 2.62x, average over six auctions. 2.59x
- Dealers: Prev. 13.4%, average over six auctions. 16.3%
- Direct (a measure of domestic buyers/demands): Prev. 20.9%, average over six auctions. 20.5%
- Indirect (a measure of international buyers/demands): Prev. 65.8%, average over six auctions. 62.9%
This article was written by Greg Michalowski at www.forexlive.com.
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