U.S. Treasury to auction off $62 billion a 7 year notes at the top of the hour

The five year issues found strong demand yesterday

The U.S. Treasury will auction off at $62 billion a seven year notes at the top of the hour. Yesterday the five year note was met with strong demand with the yield -2.5 basis point below the WI level at the time of the auction.

The major component six month averages for the seven year show:

• bid to cover, 2.31X
• Dealers 20.3%
• Directs (a measure of domestic demand) 20.3%
• Indirects (a measure of international demand) 59.4%

The last seven year auction came in at 3.32% with a tail of +0.6 basis points.