2 and 5 year auctions were mixed yesterday
The US treasury will auction off $32B of 7-year notes at the top of the hour. Yesterday, the treasury auctioned 2 and 5 year notes. The 2 year auction was stellers (high Bid to cover and negative tail). The 5 year was not as great.
The 7 year is currently trading in the WI market at 2.125%.
The last auction
- Bid to cover 6 month average 2.53x. Last 2.49x
- Direct accepted 19.1%
- Indirect accepted 60.4%
- The last auction was at 2.426%
- Dealers 6 month average 17.2%
- 4 of the last 6 auctions have stopped through the WI by an average of 0.4 bps.
