Unremarkable 7 Year Auction Prices Precisely As Expected
Unlike yesterday's weak 5 year bond auction, today's auction of $29 billion in 7 Years was completely unremarkable. The bond priced at 2.854%, in line with the When Issued, and came at a 2.86 Print To Cover, pretty much unchanged from the previous 2 auctions. Directs once again came weak at 4.48%, the lowest since October 2009, which is yet another confirmation of our view that February UK purchases will be drop, and whether that's China, Petrodollars or shadow Fed purchasing, the "UK" February total will barely budge. Indirects came in line with the average at 49.66%, while Primary Dealers were at 45.86%, the highest since November. But altogether considering some of the weirdness we have seen in the primary issuance market, this was a perfectly normal tip of the belly auction.
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