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7Y Auction Review: Strong With Largest Trade Through Since January

US TSYS/SUPPLY
  • The 7Y sees a 2bp trade through with high yield 4.212% vs Bloomberg noted WI yield of 4.232% at the cut-off. It follows a five-auction average tail of 0.4bps and marks the largest trade through since January.
  • Bid-to-cover 2.66 vs 2.48 last month and five-auction average of 2.51. Pokes above 2.65 in June for highest since Jan as well.
  • Primary dealer take: 9.77% vs 14.34% last month and five-auction average of 12.62%
  • Indirect take: 75.25% vs 69.75% last month and five-auction average of 68.94%
  • Direct take: 14.97% vs 15.91% last month and five-auction average of 18.44%
  • The 7Y note sees a ~1bp rally with the results, with yields now trading -10.4bps on the day.

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