Auction History: US to sell USD 44bln of 7yr notes at 18:00GMT/13:00EST

The upcoming US auction of $44 billion in 7-year notes will be pivotal, particularly given the recent trends in yield and auction metrics.

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Auction History: US to sell USD 44bln of 7yr notes at 18:00GMT/13:00EST

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US 7-YEAR NOTE AUCTION RECENT HISTORY:

  • High Yield: (prev. 3.93%, six-auction avg. 3.912%)
  • Tail: (prev. -0.3bps, six-auction avg. -0.1bps)
  • Bid-to-Cover: (prev. 2.51x, six-auction avg. 2.52x)
  • Dealers: (prev. 9.3%, six-auction avg. 10.2%)
  • Directs: (prev. 31.6%, six-auction avg. 28.0%)
  • Indirects: (prev. 59.0%, six-auction avg. 61.8%)
Context

With the last auction's high yield at 3.93% and a bid-to-cover ratio close to the six-auction average, market participants will be assessing demand dynamics and how this might influence the overall fixed income landscape and interest rate expectations.

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