Treasury Action: traders await the 3-year auction tomorrow Treasury Action: traders await the 3-year auction tomorrow. There's some concern that the low volume conditions will limit demand. There's been little set up for the auctions so far too. The wi 3-year is flat at 0.925%. Though that would be one of the cheapest levels in years, with the Fed likely to end QE in October and start hiking rates sometime after that, buyers could remain sidelined, holding out for a 1% handle. The July auction was ok, rather routine, stopping at 0.992% and garnering a 3.38 cover (3.34 average) and a 38.2% indirect bid (33.4% average).
Treasury announced a $50 B 4-week bill auction for Tuesday Treasury announced a $50 B 4-week bill auction for Tuesday. The debt managers boosted the size by $10 B compared to last week's volume, and brings auction supply to $171 B, including today's $54 B 3- and 6-month bill offering and the $67 B refunding.