In the last of this week's auctions, the Treasury just sold another $29 billion in 7 Year paper [2], which priced through the When Issued 1.873%, at 1.870%, the lowest yield since May, and at a Bid to Cover of 2.66, substantially higher than the 2.46 in September, and above the trailing twelve month average yield of 2.61%, once again reversing the recent trend in declining BTCs seen recently in both the 2 and the 5 Year auctions. And while the auction was largely non-remarkable, where it stood apart was that the Direct take down of 23.93% was the highest in history, with Indirects taking down 42.30%, above the 12M average of 42.3%, and the remaining 33.77% - the lowest since December 2010 - left to the Dealers, which will promptly flip this particular CUSIP WC0 back to the Fed.
[3]
And now, all eyes on the Fed, who will promise to continue monetizing as much 7 Year paper as the Treasury has the good grace of issuing.