The US treasury will complete the coupon auctions for the week with the sale of $44 billion of 7-year notes at the top of the hour. The six-month averages of the major components of the auction show:

High yield or .215%WI level at the time of the auction 4.235%Tail -2.0 basis points vs 6-month average of 0.1 basis pointsBid to Cover 2.74X vs 6-month average of 2.54XDirects (a measure of domestic demand) 20.6% vs. 6-month average of 17.3%Indirects (a measure of international demand) 72.0% vs. 6-month average of 70.3%Dealers (they take the rest) 7.5% vs. 6-month average of 12.4%

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