Bond Market Update

Auction Reaction

• U.S. Treasuries hover just below their highs that were reached during the past 30 minutes. The market has held steady in immediate reaction to today's $44 bln 7-yr note offering, which met soft demand. The sale drew a high yield of 4.473%, which tailed the when-issued yield by two tenths of a basis point while the bid-to-cover ratio (2.49x) was a touch below average (2.50x). Indirect takedown (70.1%), however, was above average (63.7%).
• Yield Check:
  • 2-yr: -6 bps to 4.26%
  • 3-yr: -6 bps to 4.29%
  • 5-yr: -5 bps to 4.35%
  • 10-yr: -5 bps to 4.59%
  • 30-yr: -4 bps to 5.09%