• High yield 1.769%
  • WI level 1.770%
  • Tail -0.1bps vs 6 month avg of 0.7 bps
  • Bid to cover 2.36X vs 2.28 average
  • Directs 22.9% vs 20.9% average
  • Indirects 62.7% vs 60.4% average
  • Dealers 14.5% vs 19.4% average

The US treasury sold $53B of 7 year notes with relatively strong demand.

Auction grade: A-


  • A negative tail of -0.1 basis point. That compares favorably to the 0.7 bp average over the last 6 months
  • The bid to cover beat the 6 month average
  • Both the domestic (directs) and international (indirects) were higher than the average
  • The dealers were saddled with less supply.

Another strong auction as the rise in yields is favorable especially for international traders. Lower stocks is also a positive for the auctions of late as investors diversify more (put cash to work in debt instruments). The 2 and 5 year note auctions earlier this week were also met with strong demand.