U.S. Treasury to sell $43 billion of seven-year notes at 1 PM ET

As US yields are moving lower today, the US treasury will auction off $43 billion of 7-year notes at 1 PM ET. A snapshot of the treasury market yield curve currently shows:

• 2-year 4.566%, -3.1 basis points
• 5-year 4.191%, -3.5 basis points
• 10 year 4.202%, -3.2 basis points
• 30-year 4.367%, -3.2 basis points

The 7-year note auction will be evaluated as per the component results versus their six auction average

High Yield:

• Previous: 4.327%
• Six-auction average: 4.379%

Tail (the difference between the WI (when – issued) yield level at the time of the auction and the high-yield:

• Previous: -0.2bps (basis points)
• Six-auction average: 0.8bps

Bid-to-Cover Ratio (the ratio of the number of bids compared to the auction amount):

• Previous: 2.58x
• Six-auction average: 2.54x

Dealers

• Previous: 15.6%
• Six-auction average: 15.4%

Directs (a measure of domestic demand):

• Previous: 14.8%
• Six-auction average: 17.6%

Indirects (a measure of the international demand):

• Previous: 69.6%
• Six-auction average: 67.0%

This article was written by Greg Michalowski at www.forexlive.com.