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Preview 7Y Note Auction

US TSYS/SUPPLY

Tsy $42B 7Y-Note auction (91282CKC4) is at the top of the hour, WI currently running around 4.327%, 21.8bp cheap to last month's tail:

  • January auction recap: Tsys futures rebounded (TYH4 taps 111-08) after the $41B 7Y note auction (91282CJX0) tailed slightly: 4.109% high yield vs. 4.107% WI; 2.57x bid-to-cover vs. 2.50x last month.
  • Indirect take-up climbed to 69.06% vs. 63.71% prior; Direct take-up receded to 17.00% vs. 19.37% prior, while Dealers took 13.94%.
  • Timing: The 7Y note results will available shortly after the competitive auction closes at 1300ET.

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