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Preview $38B 7Y Note Auction

US TSYS/SUPPLY

Tsy $38B 7Y-Note auction (91282CFC0) at the top of the hour, WI currently running around 2.732%, 54.8bp rich to last month's tail.

  • June auction recap: Bonds sold off lows after weak $40B 7Y note auction (91282CEV9) tailed (third consecutive weak sale): 3.280% high yield vs. 3.260% WI; 2.48x bid-to-cover vs. 2.69x prior month.
    • Indirect take-up: recede to 61.86% vs. 77.86% in May
    • Direct take-up: climbs to 20.41% vs. 15.76%
    • Primary dealer take-up: rebounds to 17.73% vs. last moth's record low of 6.38%
  • Timing: The 7Y note results will available shortly after the competitive auctions closes at 1300ET.

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