7Y Auction Results

26 May

7y auction results are out, amidst all of the interesting turmoil this morning out of Europe this was a pretty strong auction.

Yield: 2.429 vs. 2.712 prev (4/28), Indirects: 47.64 vs. 39.13, BTC 3.24 vs. 2.63, Coupon: 2.375 vs. 2.625

Bid to cover set a new record since 7Y’s have been issued (2009), coming in at 3.24 vs. last month’s auction at 2.63. Indirects also recovered from their recent slump as of late. I hate to try to draw conclusions to limited data, but in my (humble) opinion, I think today’s auction results were driven in part due to flight to quality. We’ll see how long the love affair lasts into the afternoon.

For those who want a quick look at the historical btc and indirect trends:

Updated: Auction Statistics/Issuance Calendar [GDocs]

Today’s auction concludes the major auctions for the month, however after the Memorial Day holiday we have the 13 and 26 week auctions coming out. June’s issuance calendar will be updated at that time.


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