US treasury sells $40 billion of seven-year notes at a high yield of 3.859%

<ul><li>WI level at the time of the auction 3.835%</li><li>High-yield 3.859%</li><li>Tail: +2.4 basis points</li><li>Bid to cover 2.5X. The last option came in at 2.44X</li><li>Indirect's 63.7 which was the weakest since March</li><li>Directs 19.37%</li><li>Dealers 16.19%</li></ul><p>Not a particularly strong auction. Rick Santelli on CNBC gave him a grade of D+.</p><p>US stocks dipped a little bit after the report but bounced back. Major indices are still up marginally (0.14% to 0.18%). The S&amp;P indexes within about 8 points it's all-time high closing level. The Dow Industrial Average is on pace to close at another record level.</p><p>Overall, US yields are at record higher across-the-board:</p><ul><li>2-year 4.280%, +3.9 basis points</li><li>10 year 3.846% +5.7 basis points</li><li>30-year 3.987% +4.2 basis points</li></ul><p>The EURUSD is trading to new lows and approaches is 100 hour moving average at $1.10458.</p><p>USDJPY is testing the low of a swing area between 141.41 and 141.61.</p>

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