US treasury to auction off $50 billion of 7 year notes

The auction calendar for the weekends with the 7 year note auction

At the top of the hour, the US treasury will auction off $50 billion of 7 year notes. The bid offer spread for the WI is currently at 0.465%/0.460%.

The last 6 auctions has seen:

• Bid to cover, 2.55x
• Dealers 21.7%
• Directs 13.8%
• Indirects 64.5%

The last auction (last month) at a high yield 0.519%. The average over the last 6 months has been 0.539%. With the yield currently at 0.46% on a WI basis, the yield is toward the lower extreme. We will see if investors are happy with at yield.