$28 Billion 7 Year Auction Hail Mary From Indirects

Nothing like scaring the indirects shitless after their lack of interest in yesterday's 5 Year auction almost lead to a failure. The Fed's yo yo game with the capital markets continues.

- Yield 3.369% vs. Exp. 3.394%
- Bid/Cover 2.63 vs. Avg. 2.45 (Prev. 2.82)
- Indirect bids 62.5% vs. Avg. 44.39% (Prev. 67.03%)
- Alloted at high 91.73% (BBG)

The two year in the meantime is whistling all the way to the lack of the Chinese bank (or Timmy's back pocket).

So let's get this straight - the Treasury thinks we are so gullible to believe that "investors" are more interested in the long end of the curve now? Sigh.