The 7-year Treasury auction on December 28, 2023, saw a high yield of 3.859%, with a tail of 2.2bps, the biggest since November 2022. The auction was described as 'very ugly' and 'tailing' by market commentators, weaker than the 5-year auction the previous day.
The US Treasury just closed out 2023's debt bacchanal with a final 7yr Note auction. While it wasn't quite abysmal, it was nothing short of dismal. Time for a quick Treasury ๐งต๐
7-year auction today was much weaker than 5-year auction yday
Closing Out 2023 With A Very Ugly, Tailing 7Y Auction https://t.co/pAILbvi3n2
There's the big ugly tail: 7Y high yield 3.859%, WI 3.837%, 2.2bps tail; biggest rail since Nov 2022
Looks like the 7-year auction wet the bed.