US treasury to auction off $62 billion of 7 year notes at the top of the hour

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.  

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