Posted by on March 11, 2019 4:15 pm
Categories: Economy

Starting a new month of coupon (and deficit) funding, today the Treasury sold $38 billion in 7 Year Treasuries at a high yield of 2.448%, the lowest yield since March 2018, which tailed by 0.4bps the 2.444% When Issued and followed the first “stop through” in February, after 10 consecutive tails.

The internals were in line with recent auctions: the bid to cover of 2.56 was virtually unchanged from January’s 2.55 and was right on top of the 6 auction average. More notably, the Indirect takedown rebounded from last month’s 45.7% print, rising to 49.5% the highest since December 2018 and above the 46.7% average, as Directs dropped sharply from 18.5% in February to just 9.4%, the lowest takedown since November, leaving Dealers with 41.1% of the auction, right on top of 41.2% 6 auction average.

Overall, a forgettable auction which placed right in line with expectations, with attention now turning to tomorrow’s 10Y benchmark issue.


The article, "3Y Auction Tails As Yield Drops To One Year Low", was syndicated from and first appeared at:

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