US 7-Year Treasury Auction Yield Hits 5.085%, Highest Since 2009
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The U.S. Treasury sold $44 billion in 7-year notes at a high yield of 5.085%, the highest since the bond was reintroduced in 2009. The yield exceeded the pre-auction when-issued level of 5.078%, indicating weaker demand than expected. Primary dealers took 12.5% of the auction, up from the previous sale, while indirect bidders' allocation fell to 57.2% and direct bidders rose to 30.2%. The bid-to-cover ratio of 2.42x was below the average of 2.49x for the prior six auctions. Market reaction was muted, with little change in pre-auction yields after the results.
Source report
The U.S. Department of the Treasury auctioned $44 billion in 7-year notes, with a high yield of 5.085%. This marks the highest yield since the reintroduction of this maturity in 2009.
- The pre-issuance trading level at the bid deadline (1:00 PM New York time) stood at 5.078%, indicating demand fell short of expectations.
- The pre-issuance yield showed little change on the day by the bid deadline, and market reaction to the auction results was minimal.
Bidder Composition
- Primary dealers: Awarded 12.5% of the issue, up from the previous auction.
- Indirect bidders: Allocation fell to 57.2%.
- Direct bidders: Allocation rose to 30.2%.
Bid-to-Cover Ratio
The bid-to-cover ratio was 2.42 times, compared to the average of 2.49 times for the six most recent auctions of the same maturity.
Source
新浪财经Neutral / independent