US Treasury sells $77B of 7 year notes at a high yield of 4.290%

• High Yield 4.290%
• WI level at the time of the auction 4.291%
• Tail -0.1 basis points
• Bid to cover 2.52X which is near the six month average of 2.48X
• Directs 11.2% much lower than the average of 27.5%
• Indirects 78.39% much higher than the average of 61.2%
• Dealers 10.42%. Lower than the average of 11.3%

AUCTION GRADE:C+

The WI level at the time of the auction was 4.291%. The seven year note was auctioned off at a high yield of 4.290% just below that level. The bid to cover came in near the average. The mix however was very much skewed toward international buyers. They took a whopping 78.4% (well above the 61.2 average), while domestic buyers only took 11.2% (below the average of 27.5).

The numbers from the buyers were a bit mixed up, but overall demand as measured by the tail, the bid to cover, and dealer percentage were near the averages.

This article was written by Greg Michalowski at investinglive.com.