US treasury auctions offer 7-year notes at a high yield of 4.457%

• High yield 4.457%
• WI level at the time of the auction 4.466%
• Tail:-0.9 basis points versus 6–month average of -1.0 basis points
• Bid to Cover: 2.64X vs. six-month average of 2.66X
• DIrects (Domestic demand): 23.06% vs 6-month average of 16.3%
• Indirects (international demand): 67.08% vs 6-month avearage of 74.0%
• Dealers (they take the rest): 9.86x% vs 6-month average of 9.7%

Auction Grade: C

The tail of -0.9 basis points was the good new but only average compared to the 6 month average. The Bid to cover was also average. Domestic demand was strong but the international demand was weaker than average. The dealers took about the average.

I was going to give a C+/B- but on 2nd view, it is near the 6 month averages. So I give it a C vs the history (average).

This article was written by Greg Michalowski at www.forexlive.com.