The U.S. Treasury sold $44 billion of seven-year notes at a high yield of 4.512%, matching the when-issued level at auction time. Demand landed close to recent averages, and the sale earned a C grade with a slight tilt toward weaker.
The U.S. Treasury sold $44 billion of seven-year notes at a high yield of 4.512%, matching the when-issued level recorded at the time of the auction.
Bidding data showed no tail, with the yield coming in 0.0 basis points from the when-issued level versus an average tail of 0.2 basis points. The bid-to-cover ratio came in at 2.50 times, close to the six-month average of 2.49 times.
Domestic buyers took a larger share than usual. Direct bidders purchased 27.0% of the notes versus a 23.1% average. Indirect bidders, who typically include international buyers, took 60.8% versus a 65.1% average. Dealers were left holding 12.3% of the sale versus their 11.8% average.
The auction earned an overall grade of C, reflecting bid-to-cover demand near the average but a tilt toward the weaker side, not by much.
Source: Investinglive
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