WI currently trading at 1.2725%
The US treasury will auction off $62 billion of 7 year notes at the top of the hour. The current WI trades at 1.2725%
A look at the last six month averages shows:
- Bid to cover, 2.28x
- Dealers, 24.5%
- Directs, 16.9%
- Indirects, 58.6%
- The average tail over the last six auctions has been 0.9 basis points.
- The last auction high yield came in at 1.195%
The tail at the last 7-year auction was a whopping 4.4 basis points and a low bid to cover at 2.04x (lowest ever). That auction led to a sharp rise in yields and drop in stocks on February 25th. The yield spiked to a then cycle high at 1.2626%. The NASDAQ index closed down -478 points on that day.