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Munich
Monday, June 21, 2021

U.S. Treasury auctions off $62 billion a 7-year notes at a high yield of 1.285%

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WI at the time of the auction was 1.291%

  • High yield 1.285%. Last auction came in at 1.306% 
  • WI was at 1.291%. Tail of -0.6 basis points
  • Bid to cover 2.41x.  Six month average 2.26x
  • Dealers 19.73%.  Six month average 24.8%
  • Indirects 59.6%.  Six month average 57.0%.
  • Directs 20.7%.  Six month average 18.2%.

For the 2nd consecutive day, the auction went off without a hitch. 

  • The tail was -0.6 bps
  • Bid to cover was above the six month average
  • Dealers were saddled with less than the six month average
  • Indirects (foreign demand) was higher than normal
  • Directs, a measure of domestic demand, was also higher. 

Grade: B+. There was a yield concession vs the yields at this time yesterday which made floating the issue easier than the A- grade from similar results seen at the auction yesterday. Nevertheless, a solid showing.  

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