Jefferies money market economist Tom.....>

US TSYS/7Y: Jefferies money market economist Tom Simons said today's $28B 7-year

note auction "stopped 0.9 bps above where the WI was bid at 1:00PM at 1.941%.

This is the lowest yield on a 7-year note auction since October 2016." 

- He adds that "indirects took down 68.8% of the auction, which is a bit below

the recent average. However the recent average is skewed to the upside because

of the 81.7% takedown in April that was, as the time, a record high for all

Treasury coupon auctions, dating back to May 2003."

-  He adds "on the other side of the coin, Dealers took down 14.6% of the

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

lowest on record."

- He said "directs took down 16.6%, solidly above average. Another big Direct

bid, following a strong showing in yesterday's 5-year auction, suggests that a

major player had interest in the belly of the curve. However, the

underperformance of the long-end yesterday and today ahead of the auction makes

it difficult to determine if this is new money coming into the market or simply

a rotation trade out of the long-end."