This page has been archived and commenting is disabled.
Unexpected Surge In Auction Demand For 7 Year Treasury
The 2 Year auction was strong, the 5 Year auction yesterday was mixed, but one word can best describe demand for today's issuance for "curve belly" 7 Year paper: blistering.
Moments ago, the 7 Year When Issued was trading at 2.028, expecting some serious concessions into the auction. Not only did these not materialize but the auction came in far better than expected, pricing in at 2.013%, a whopping 1.5 bps through the When Issued. The Bid to Cover was a strong 2.511, well above the 2.46 TTM average, with 56% of the auction going to indirects - above the 12 month average of 54.6%, 13.5% to Directs, which was also above average, leaving 30.5% for the Dealers.
Overall, the strong auction provided a lift for the longer end of the curve, which as a result of today's auction is set to flatten the 2s30s even more, thus making an even bigger mockery of the "Net Interest Margins are rising" thesis.
- 168 reads
- Printer-friendly version
- Send to friend
- advertisements -



The USD is one of the safest bets. There's always taking your money to Europe where they will charge you to hold it.
If the US can somehow avoid zero or negative interest here, demand will remain robust.
Heh, hilarious.
This was meant in jest...right?
How many are being resold as a 'safe' investment for fleeing third worlders?
I'm trying to understand how in the race to the bottom , the USD going in the higher direction, is sold as a great thing US citizens.
Cheaper happy meals, gasoline, toys, shoes, socks, anything else from China that will speed up Ameica's coming diabetic heart attack
Brussels on line 1....they need more thought up dough.....hit some fucking keystrokes, or they'll send over Van Damme to kick the fuck out of ya.
and Luxembourg, Ireland, Cayman Islands and Switzerland. Keep buying US paper or Paris will happen to YOU
"...with 56% of the auction going to indirects"
You're welcome.
Sincerely,
The BLICS