US treasury sells $32 billion of 7 year notes
- WI was trading at 1.233% before the auction. Tail of 1.4 basis points
- Bid to cover comes in at 2.49X versus six-month average of 2.4x
- Dealers 23.93 percent versus six-month average of 22.7%
- Directs 13.1% versus six-month average of 16.0%
- Indirects 62.96% versus six-month average of 61.3%
The good news is that the bid to cover was little higher than the six-month average and the dealers average was around average. The not so good news was the 1.4 basis point tail to the WI signaling not that great demand that the levels (may also the an indication that the market is not that keen on levels this low).
