The US Treasury held a 5-year Note auction with disappointing results, as the yield was 4.055% vs 4.035% WI, leaving a 2bp tail. The 7-year bond sale saw a high yield rate of 4.109% with a bid-cover ratio of 2.570. The market expected this outcome, and the Treasury is likely to increase auction sizes due to the US budget gap.
⚠️ US BUDGET GAP SHOULD PROMPT TREASURY TO INCREASE AUCTION SIZES AGAIN (Reuters) The U.S. Treasury Department is likely to announce one more round of increases in its auction sizes when it details its borrowing needs for the coming quarter next week, as it faces higher…
#TreasuriesToday: Yields narrowly mixed inside yday's rally ranges. 2Y, 5Y, 7Y auctions are back in the money. Feb options expire. Ahead: Treasury drops quarterly financing estimates Mon, previews Feb-April auction sizes Weds, having said to expect one more round of increases.
7 year notes draw 4.109% vs 4.106% pre-sale when issued yield Allotted at 44.45%, bid to cover 2.57 Not great but market expected this...to some extent
US 7-Year Bond Sale: - High Yield Rate: 4.109% (prev 3.859%) - Bid-Cover Ratio: 2.570 (prev 2.500) - Direct Accepted: 17.0% (prev 19.4%) - Indirect Accepted: 69.1% (prev 63.7%) - WI: 4.106%
7Y high yield 4.109%, WI 4.106%, 0.3bps tail, 3rd tail in a row.
Given yday train-wreck auction, I'm actually paying attention to the 7s - WI at 4.106% $SPY $QQQ $IWM
🔴 TREASURY WI 7Y YIELD 4.106% BEFORE $41 BILLION AUCTION.
#TreasuriesToday: Yields mixed, off session highs, inside yday's selloff ranges. 30Y briefly exceeded 4.24%, YTD high. 2Y & 5Y yields > this week's auction stops. $41b 7Y at 1pm is last coupon auction of the Nov-Jan financing quarter. WI yield 4.14% vs 3.859% result last month.
The US Treasury held a 5yr Note auction today that fell between not good and ugly. Why? Expectations went unmet, with a 4.055% yield vs 4.035% WI, leaving a 2bp tail. Ugly. BTC of 2.31, lowest in over a year. Not good. And foreign bids didn't show up, leaving Dealers holding… https://t.co/ht8qIxUgF2