US treasury to sell $42 billion of 10 year notes at 1 PM ET

The U.S. Treasury will auction off $42 billion of 10 year notes at 1 PM ET. The results of the auction will be compared to the 6 month averages of the major components, and could impact the price of treasuries/yields. Stronger demand leads to lower yields generally speaking.

The six-month averages of the major components show:

• Tail -0.3 basis points
• Bid to cover 2.54X
• Directs (domestic buyers) 20.1%
• Indirects (international buyers) 70.2%
• Dealers (they fill in the difference) 9.7%.

US yields are lower after the market was close yesterday in observance of Veterans Day:

• 2-year yield 3.559%, -3.1 basis points
• 5 year yield 3.659%, -5.1 basis points
• 10 year yield 4.057%, -5.0 basis points
• 30 year yield 4.653%, -4.9 basis points

This article was written by Greg Michalowski at investinglive.com.