News

US sells $32 billion 7 year note at high yield of 1.633%

WI was trading at 1.638% at the auction time.

  • high yield at seven year note auction at 1.633% versus WI level of 1.638%
  • bid to cover 2.49x versus 2.16x at previous auction.  Six month average 2.37x
  • 20.2% awarded to primary dealers.  6 month average 24.1%
  • 14.6% to direct bidders. 6 month average 17.9%
  • 65.2% to indirect bidders. 6 month average 58.0%

Good auction.

The 2 year auction was sold at a yield 1 bp below the WI yield. Yields were under pressure in flight to safety bid.

Yesterday the five year auction was sold at a yield 1basis point above the WI yield. Yields were moving higher yesterday as fear subsided.

Today the seven year was auctioned at a yield 0.5 bp below the WI yield. Yields again are lower today (Flight to safety?).

The pattern seems dependent on the price action of the day at current levels.

Good demand. Good auction. 

ForexLive