The US treasury will auction off three year notes at the top the hour. The auction success or failure will be judged against the six-month averages of the major components:

• Tail 0.0 basis points
• Bid to cover 2.62X
• Directs (a measure of domestic demand) 16.8%
• Indirects (a measure of international demand) 67.5%
• Dealers 15.7%

The last auction high yield came in at 4.30%. The current three-year note is trading lower by around 40 basis points at 3.907%:

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