Bond Market Update

Treasury Auction Preview

• $44 bln 7-year Treasury note auction (results at 13:00 ET)
  • Prior auction results:
    • High yield: 4.123%
    • Bid-to-cover: 2.55
    • Indirect bid: 59.3%
    • Direct bid: 25.4%
  • Average results of previous 12 auctions:
    • High yield: 4.205%
    • Bid-to-cover: 2.59
    • Indirect bid: 69.6%
    • Direct bid: 19.3%

• Yield check:
  • 2-yr: -5 bps to 3.94%
  • 3-yr: -5 bps to 3.91%
  • 5-yr: -7 bps to 4.00%
  • 10-yr: -5 bps to 4.43%
  • 30-yr: -5 bps to 4.93%