November 27, 2024 16:41 GMT
US TSYS/SUPPLY: 7Y Auction Review – Strong Despite Rally Into It
US TSYS/SUPPLY
Treasuries have rallied on the strong 7Y auction, with yields 1.5-2.5bp lower since the bidding deadline as 5s-10s push towards yield lows for the session and 30s are through them. The directs take stepped strongly higher, just as was the case in yesterday’s 5Y in signs of domestic bidding demand vs foreign bidding pulling back.
Treasury sold $44bn of the 7Y at a high yield of 4.183% vs the WI of 4.197% per Bloomberg.
- The 1.4bp stop through follows a strong 2.0bp from Oct vs the five-auction average of 0.5bp.
- Bid-to-cover: 2.71x vs 2.74x in Oct (highest since Mar 2020) and a five-auction average of 2.62x.
- Primary dealer take: 9.99% vs 7.47% in Oct (lowest on record) and a five-auction average of 10.17%.
- Indirects take 64.08% (lowest since Dec 2023) vs 71.96% in Oct and a five-auction average of 72.38%.
- Directs take 25.94% (highest since Mar 2022) vs 20.57% in Oct and a five-auction average of 17.45%.
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