US treasury auctions off $58 billion of three year notes at a high yield of 3.824%

• High yield 3.824%
• WI level at the time of the auction 3.86%
• Tail -0.2 basis points. Six month average +0.7 basis points
• Bid to cover 2.56X vs six month average 2.63X
• Directs 23.7% vs six month average 16.3%. Strong domestic demand
• Indirects 62.4% vs six month average of 67.6%
• Dealers 13.9% versus six month average of 16.1%

Auction Grade B+

Strong domestic demand. Below average international demand but dealers were saddled with less than average.

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