Jefferies economist Tom Simons noted.....>

US TSYS/7Y: Jefferies economist Tom Simons noted "the 7-year note auction

stopped 1.1 bps above where the WI was bid at 1:00PM at 2.131%. This was a very

strong auction."

- He added that "indirects took down 70.6% of the auction, which is their

largest takedown since the record 81.7% takedown in April that was, as the time,

a record high for all Treasury coupon auctions, dating back to May 2003."

- He said that "on the other side of the coin, Dealers took down 10.4% of the

auction, the second smallest since the 8.8% record-low takedown in April.

Directs took down 19%, which is their largest takedown since December 2016." 

- He added the Tsys market "looks to have squared up following the selloff this

morning."