The US treasury will auction off $16 billion of 20 year bonds at the top of the hour. The six-month averages of the major components shows:
Bid-to-cover 2.57XTail 0.4 basis pointsDealers 15.7%Directs (domestic buyers) 17.1%Indirects (nternational buyers) 67.2%
The last auction went off at a high yield of 4.81%. The current 20 year yield is at 5.049%. The Bid to cover was at 2.63X and the Tail was at -0.4 bps.
This article was written by Greg Michalowski at www.forexlive.com.