US treasury auctions off $39 million of 10 year notes at a high yield of 4.435%

Forex Short News
  • High yield 4.435%
  • WI level at the time of the auction 4.465%
  • Tail -3.0 bps vs six-month average of -0.2 basis points
  • Bid to cover 2.67X vs six-month average of 2.56X
  • Indirects 87.9% versus six-month averages 68.3% (international demand is huge )
  • Directs 1.4% versus six-month average of 17.9%. (domestic buyers were outbid
  • Dealers 10.7% versus six-month average of 13.8%

The fears of international buyers not showing up was not to be. The current 10 year yield is now at 4.385% up 12.6 basis points.

The successful auction has also pushed up the stock market with the NASDAQ index now up 400 points or 2.62%. The S&P is up 78.9 points or 1.56%.

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