US Treasury sells $44 billion of 7-year notes at a 4.473% yield
Key Takeaways
- •The U.S. Treasury sold $44 billion of 7-year notes at a high yield of 4.473%.
- •The auction cleared 0.2 basis points above the when-issued level, indicating a modest tail.
- •The bid-to-cover ratio was 2.49 times, nearly matching the recent average of 2.48 times.
- •Direct bidders bought 16.9% of the issue, while indirect bidders took 70.1% and dealers were left with 13%.
- •The auction received a C- grade and ended coupon auctions before the Federal Reserve meeting on Wednesday.
The US Treasury sold $44 billion of 7-year notes at a high yield of 4.473%.
The when-issued (WI) level at the time of the auction was 4.471%, leaving a tail of 0.2 basis points.
The bid-to-cover ratio was 2.49 times, compared with an average of 2.48 times.
By buyer type, direct bidders took 16.9% of the issue, below the average of 24%. Indirect bidders accounted for 70.1%, above the average of 64.5%. Dealers were left with 13%, compared with an average of 11.4%.
The auction received a grade of C-.
The result was described as a modestly below-average auction, and it concluded the coupon auctions ahead of the Federal Reserve decision on Wednesday. With the 7-year sale closing out this part of Treasury issuance, market attention now shifts to the Fed meeting, where rate guidance typically influences demand conditions across government debt auctions and the broader rates market.