The US treasury auctions $44B of 7-year notes at high yield of 4.65%. WI level 4.637%

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