As US yields are moving lower today, the US treasury will auction off $43 billion of 7-year notes at 1 PM ET. A snapshot of the treasury market yield curve currently shows:
- 2-year 4.566%, -3.1 basis points
- 5-year 4.191%, -3.5 basis points
- 10 year 4.202%, -3.2 basis points
- 30-year 4.367%, -3.2 basis points
The 7-year note auction will be evaluated as per the component results versus their six auction average
High Yield:
- Previous: 4.327%
- Six-auction average: 4.379%
Tail (the difference between the WI (when – issued) yield level at the time of the auction and the high-yield:
- Previous: -0.2bps (basis points)
- Six-auction average: 0.8bps
Bid-to-Cover Ratio (the ratio of the number of bids compared to the auction amount):
- Previous: 2.58x
- Six-auction average: 2.54x
Dealers
- Previous: 15.6%
- Six-auction average: 15.4%
Directs (a measure of domestic demand):
- Previous: 14.8%
- Six-auction average: 17.6%
Indirects (a measure of the international demand):
- Previous: 69.6%
- Six-auction average: 67.0%
