Today’s 7y auction was largely disappointing, with bonds selling off shortly after the results. Yours truly was expecting indirects around 50, with a bid to cover of 2.81-85, which did not materialize today. The trend in bid to cover continues down, along with a pullback in indirect bidder demand.
Yield: 2.712 vs. 2.895 prev (3/30), Indirects 39.13 vs. 49.41, Bid To Cover: 2.63 vs. 2.79, Coupon: 2.625 vs. 2.875
This concludes the auctions for the month, enjoy the weekend.