Auction History: US Treasury to sell USD 58bln of 3-year notes at 16:30GMT/11:30EST

The upcoming Treasury auction of $58 billion in 3-year notes is set against a backdrop of moderate investor sentiment.

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Auction History: US Treasury to sell USD 58bln of 3-year notes at 16:30GMT/11:30EST

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  • High Yield: (prev. 3.614%, six-auction avg. 3.636%)
  • Tail: (prev. -0.8bps, six-auction avg. -0.4bps)
  • Bid-to-Cover: (prev. 2.64x, six-auction avg. 2.65x)
  • Dealers: (prev. 9.0%, six-auction avg. 12.0%)
  • Directs: (prev. 19.0%, six-auction avg. 24.6%)
  • Indirects: (prev. 72.0%, six-auction avg. 63.3%)
Context

The recent high yield is slightly lower than historical averages, suggesting stable demand, though the lower proportion of dealers indicates possible reduced confidence among primary market participants. Overall, watch for the bid-to-cover ratio and the types of bidders, as they can imply future appetite for Treasuries and influence yield expectations across the curve.

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