Free Trial

7Y Note Auction Review: Tails But Better Underlying

US TSYS/SUPPLY
  • The 7y sale tails by 1.3bps (2.499% vs WI of 2.486%) on a volatile day, meaning two of the three out of the 2, 5, and 7 sales in the past two days have tailed.
  • The high yield at 2.499% is the highest since Feb-2019 and saw 36.87% allotment,
  • Underlying metrics were stronger though, with bid/cover at 2.44 above both the five auction average (2.32) and any of those auctions individually, last higher in Aug-2020.
  • Primary dealer take of 10.52% also below the five auction average of 16.42%.
  • 7Y note zigzags, selling off 1.5bps on the results before trimming the move and then moving back to 2.50% again on a day with a range of 2.470-2.635%.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.