Bond Market Update

Treasury Auction Preview

• $44 bln 7-year Treasury note auction (results at 13:00 ET)
  • Prior auction results:
    • High yield: 4.183%
    • Bid-to-cover: 2.71
    • Indirect bid: 64.1%
    • Direct bid: 25.9%
  • Average results of previous 12 auctions:
    • High yield: 4.177%
    • Bid-to-cover: 2.56
    • Indirect bid: 69.2%
    • Direct bid: 18.3%
      
      
• Yield check:
  • 2-yr: +1 bp to 4.35%
  • 3-yr: +1 bp to 4.37%
  • 5-yr: +3 bps to 4.47%
  • 10-yr: +2 bps to 4.61%
  • 30-yr: +2 bps to 4.78%