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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. 

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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. 

Keep reading...Show less