US treasury auctions off $35 billion 7-year notes at a high yield of 3.839%

<ul><li>High-yield 3.839%</li><li>Tail -1.1 basis points versus six-auction average of 0.3bps.</li><li>Bid-to-Cover 2.65 X versus six-auction average of 2.51x.</li><li>Dealers 8.14% versus six-auction average of 12.7%.</li><li>Directs 16.55% versus six-auction average of 18.9%.</li><li>Indirects 75.31% versus six-auction average of 68.4%.</li></ul><p>Auction grade: A</p><p>If there is a negative it is only the domestic demand was less than the average over the last 6 months. However, they were strongly outbid by the international demand. Dealers were left with much less than the 6 month average.</p><p>The Tail was negative vs an average which has been positive. The bid to cover was strong as well. </p><p>No complaints from this auction. </p>

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