US treasury auctions off $36B of 7 year notes at a high yield of 3.898%

The US treasury auctioned off $36B of 7 year notes. Below are the details of the auction:

• High yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term 3.898
• WI level at the time of the auction 3.903%
• Tail -0.5 bps vs 6 month average of 0.0 basis points
• Bid to cover 2.57X vs 6 month average of 2.55X
• Directs (domestic demand) 24.7% vs 6 month average of 19.8%
• Indirects (international demand) 62.5% vs 6 month average of 68.7%
• Dealers (dealers take the rest) 12.9% vs. 6 month average of 11.5%

Mixed auction, but better than the 2 and 5 year auctions.

Positives:

• A negative tail of -0.5 basis points which is better than the 0.0BP average over the last 6 months
• The domestic direct demand was strong at 24.7%. US investors are being attracted by the higher yields

Negatives:

• international demand was less than the 6 month average
• the dealers took a little more than the six-month average

Neutral:

• the bid to cover was near the six-month average