The U.S. Treasury 7 year note auction showed:
- High-yield 4.65%
- WI level at the time of the auction 4.637%
- Tail: 1.3 basis points versus 6-auction average 0.5bps
- Bid-to-cover: 2.43X versus 6-auction average 2.53x
- Dealers: 17% versus 6-auction average 21.3%
- Directs (a measure of domestic demand): 16.13% versus 6-auction average 17.6%
- Indirects (a measure of international demand): 66.88% versus 6-auction average 66.9%
Details: For the third coupon auction in a row, there was a positive tail (+1.3 basis points today). The bid to cover was also on the light side compared to the six month average.
Domestic/direct bidders were lower than the six month average, but the international demand was spot-on the average.
Auction Grade: C