Technical Analysis

US treasury to auction off $35 billion 7 year notes at the top of the hour

The US treasury will complete its weekly note auctions with the sale of $35 billion and 7 year notes at the top of the hour. On Tuesday, the treasuries 2 year note auction was a dud. Yesterday’s 5 year note auction was much better with strong international demand. The 7 year note will cast the deciding vote.

Looking at the last 6 auctions, the component averages shows:

  • Bid to cover 2.57X
  • Tail -0.4 basis points
  • Directs (a measure of domestic demand) 19.1%
  • Indirects (a measure of international demand) 69.0%
  • Dealers (they are left with the rest) 11.9%.

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