US treasury auction off 3, 10, and 30 year coupon issues next week

The US treasury will sell

• $58 billion of 3 year notes on Tuesday,
• $39 billion up 10 year notes (9 year and 11 month actually) on Wednesday, and
• $22 billion of 30 year bonds (29 year and 11 month actually) on Thursday

The size of the 10 and 30-year issues are unexpectedly cut by 3 billion each. Cash flow must be better for the treasury. Either that of they will look to increase the shorter-term bill issues.

Last month, the 10-year note auction was not that great. Here were the results vs the 6 month averages and the WI level at the time of the auction.

• High yield at 3.960%
• WI level at the time of the auction 3.929%
• Tail +3.1 basis points versus 6-month average of 0.1 basis points
• Bid to Cover 2.32X vs 6-month average of 2.52X
• Dealers 17.88% vs 6-month average of 15.5%
• Directs 15.9% vs 6-month average of 17.1%
• Indirects 66.2% versus 6- month average of 67.5%

AUCTION GRADE: D-

This article was written by Greg Michalowski at www.forexlive.com.