Bond Market Update

Treasury Auction Preview

• $44 bln 7-year Treasury note auction (results at 13:00 ET):
  • Prior auction results:
    • High yield: 4.512%
    • Bid-to-cover: 2.50
    • Indirect bid: 60.8%
    • Direct bid: 27.0%
  • Average results of previous 12 auctions:
    • High yield: 4.102%
    • Bid-to-cover: 2.48
    • Indirect bid: 62.9%
    • Direct bid: 25.4%
  • Yield check:
    • 2-yr: +1 bp to 4.90%
    • 3-yr: unch at 4.97%
    • 5-yr: +2 bps to 5.02%
    • 10-yr: +4 bps to 5.15%
    • 30-yr: +4 bps to 5.44%