The U.S. Treasury will complete the coupon auctions for the week with the sale of 7 year notes at the bottom of the hour ($44 billion). The auction is a little early ahead of the Thanksgiving day holiday. Despite the early auction, the bond market will remain open for the rest of the trading day.
The auction results will be compared to the 6 month averages of the major components to determine the relative demand for both domestic and international buyers:
- Tail -0.6 basis points
- Bid to cover 2.56X
- Direct buyers (domestic buyers) 23.5%
- Indirect buyers (international buyers) 67.2%
- Dealers (they take the balance) 9.2%
The 2 and 5 year note auctions were met with average demand.
