---
title: "U.S. Treasury to auction $58 billion of 3 year notes at the top of the hour"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281912998.md"
description: "The U.S. Treasury is set to auction $58 billion of 3-year notes shortly. Key metrics from the last auction include a high yield of 3.579%, a tail of 1.1 bps, a bid-to-cover ratio of 2.55x, with dealers taking 19.5%, directs at 20.7%, and indirects at 59.8%. These components indicate demand levels, with a strong auction characterized by low tail, high bid-to-cover, and strong participation from both domestic and foreign buyers."
datetime: "2026-04-07T16:55:57.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281912998.md)
  - [en](https://longbridge.com/en/news/281912998.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281912998.md)
---

# U.S. Treasury to auction $58 billion of 3 year notes at the top of the hour

The U.S. Treasury will auction off $58 billion of 3 year notes at the top of the hour. The auction results will compared to the 6 auction average for the major components. Below are the last values at the last 3 year note auction followed by the 6 auction average.

-   **High Yield:** 3.579% (6-auction avg. 3.579%)
-   **Tail:** 1.1 bps (6-auction avg. -0.3 bps)
-   **Bid-to-Cover:** 2.55x (6-auction avg. 2.66x)
-   **Dealers:** 19.5% (6-auction avg. 12.3%)
-   **Directs:** 20.7% (6-auction avg. 25.8%)
-   **Indirects:** 59.8% (6-auction avg. 61.9%)

What do each of these components represent

-   **Tail:** The difference between the auction yield and the when-issued (WI) yield just before the auction  
    → **Positive tail:** weaker demand (investors demanded a higher yield)  
    → **Negative tail (stop-through):** strong demand
-   **Bid-to-Cover:** Total bids divided by the amount sold  
    → **Higher ratio:** stronger overall demand and competition  
    → **Lower ratio:** softer demand
-   **Dealers (Primary Dealers):** Banks obligated to bid and take down supply if others don’t  
    → **Higher dealer share:** weaker demand from real investors (dealers had to absorb more)  
    → **Lower dealer share:** healthier auction
-   **Directs:** Domestic buyers placing bids directly (e.g., mutual funds, pensions, hedge funds)  
    → **Higher directs:** solid domestic real-money demand  
    → **Lower directs:** less domestic participation
-   **Indirects:** Typically foreign buyers (central banks, sovereign funds, global investors)  
    → **Higher indirects:** strong foreign demand (generally bullish for Treasuries)  
    → **Lower indirects:** weaker global appetite

**Bottom line:**

-   **Strong auction:** Stop-through/low tail + high bid-to-cover + low dealer take + strong directs/indirects
-   **Weak auction:** Positive tail + low bid-to-cover + high dealer share + weak indirect demand\*\*

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