The auction saw no tail and strong demand, with a bid-to-cover ratio of 2.50X, though indirect buyer participation declined.
The US Treasury sold $44 billion of 7-year notes at a high yield of 4.26%, matching the when-issued level at auction. The yield was down from 4.290% in the previous auction but above the six-auction average of 4.076%.
The auction saw a tail of 0.0 basis points, better than the average of 0.2 basis points. The bid-to-cover ratio was 2.50X, slightly above the average of 2.49X. Domestic buyers accounted for 29.7% of the auction, while international buyers took 57.6%, below the six-month average of 64.8%.
Dealers absorbed 12.8% of the notes, up from the six-month average of 10.9%. The results reflect steady demand but a shift in buyer composition.