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:

Tail 0.1 basis pointsBid to Cover 2.54XDirects (a measure of domestic demand) 17.3%Indirects (a measure of international demand) 70.3%Dealers (they take the rest) 12.4%

The yield last month came in at 3.668%. The current 7-year yield is much higher at 4.239%.

The 2 and the 5-year auctions yesterday were met with average/below average demand. WIll the buyers show up today?

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