US treasury auctions off $37B or 7 year note at a high yield of 3.130%

• High yields 3.13%
• Tail -2.8 bps
• WI level 3.158%
• Bid to cover 2.65X versus six with average of 2.46X
• Directs 15.7% versus six month average of 21.8%
• Indirects 75.72% vs 6 month average of 64.2%
• Dealers 8.85% versus six month average of 13.9%

Auction Grade: A

In contrast to the 2 and 5 year auction, the buyers came in to support the 7 year.

The tail of -2.8 bps shows strong demand. The demand came from international buyers who took nearly 11% more than the 6-month average. Admittedly, the domestic demand was less but bid to cover was still comfortably above the 6 month average (2.65x vs 2.46x average).

Dealers were saddled with much less than average at just 8.85%.

The overseas investers own this auction.

/inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term