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Preview $62B 7Y Note Auction

US TSYS/SUPPLY

Rounding out the week's Tsy supply with $62B 7Y-Note auction (91282CDF5) at the top of the hour, WI currently running around 1.432%, appr 10bp cheaper to last Sep's 1.332% high yield.

  • Sep auction recap: Treasury futures extended the sell-off after the weak sale (1.332% high yld vs.1.324% WI); 2.24x bid-to-cover vs. 2.34x prior.
    • Indirect take-up: 60.09%
    • Primary dealer take-up: 18.99%; Direct take-up: 20.92%

Timing: The 7Y note results will available shortly after the competitive auctions closes at 1300ET. The next 7Y auction is tentatively scheduled for November 23.

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