US treasury auctions off $72 billion of 7-year notes at a high yield of 1.306%

WI level at the time of the auction was 1.305%

• High yield 1.306% versus 1.305 WI at the time of the auction. The last auction came in at 1.30%
• Bid to cover 2.31x versus six month average of 2.25x
• Dealers 22.33% versus six month average of 25.2%
• Directs 20.6% versus six month average of 17.1%
• Indirect 57.1% versus six month average of 57.7%

Overall is a decent auction. The yield came in just a hair above the WI level (tail of 0.1 basis point). The bid to cover was above the six month average. Dealers were saddled with less than the six month average. Overall good demand from the directs and indirects.