US treasury auctions off $42 billion of 7 year notes at a high yield of 2.777%

Below are the auction results for the sale of $42 billion of 7 year notes:

• 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 2.777%. The high yield at the last auction came in at 2.908
• WI level at the top of the auction 2.801%
• Tail -2.4 basis points vs six-month average of 0.5 basis points
• Bid to cover 2.69Xvs. six-month average of 2.37 times
• Directs 15.76% vs. six-month average of 23.0%.
• Indirects 77.9% vs. six-month average of 61.8%
• Dealers 6.38% vs. six-month average of 15.2%

Auction Grade: A+

The tail was well below the six-month average of 0.5 basis points that -2.4 basis points. The international demand was huge at 77.9% vs. six-month average of 61.8%. Domestic demand from the direct bidders was less than expected but they were outbid by the international traders. The dealers took a very small 6.38% as a result.