US treasury auctions off $44 billion of the 7 year notes at a high yield of 4.162%

• High-yield
• WI level at the time of the auction 4.166%
• Bid the cover 2.64X vs six-month average of 2.54X.
• Tail -0.4 basis points vs six-month average of 0.0 basis points
• Dealers 8.87% vs six-month average of 14.2%
• Directs (domestic buyers) 16.76% vs six-month average of 17.5%
• Indirects (international buyers) 74.38% vs six-month average of 68.3%

AUCTION GRADE: A

Strong demand by international buyers at 74.38%. That left the dealers with a small 8.87% of the balance. Domestic buyers were a little lesson average but not by much. The cover was higher than the average, and the tail was negative vs the WI level at the time of the auction.

Quite a strong auction as international investors seem to want to get involved in US debt ahead of potential rate cuts through year end.

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