Bond Market Update

Treasury Auction Preview

• $44 bln 7-year Treasury note auction (results at 13:00 ET):
  • Prior auction results:
    • High yield: 3.925%
    • Bid-to-cover: 2.49
    • Indirect bid: 77.4%
    • Direct bid: 12.8%
  • Average results of previous 12 auctions:
    • High yield: 4.153%
    • Bid-to-cover: 2.62
    • Indirect bid: 69.7%
    • Direct bid: 20.9%