Bond Market Update

Auction Reaction

• U.S. Treasuries have spent the better part of the past three hours in a steady rise off their morning lows. The market just received a push to fresh highs from a strong finish to this week's note auction slate. Today's $44 bln 7-yr note sale drew a high yield of 4.194%, which stopped through the when-issued yield by nearly a basis point. The bid-to-cover ratio (2.64x) was above average (2.59x) while indirect takedown (66.1%) was a bit below average (71.0%).
• Yield Check:
  • 2-yr: UNCH at 4.10%
  • 3-yr: -1 bp to 4.08%
  • 5-yr: -2 bps to 4.11%
  • 10-yr: -3 bps to 4.27%
  • 30-yr: -3 bps to 4.52%