US treasury auctions off 35 billion of 7 year notes at a high yield of 3.890% | Forexlive

• High yield of 3.890%
• WI 3.863%
• Tail 2.7 basis points vs. six-month average of -0.4 basis points
• bid to cover 2.33 vs. 2.57 X
• dealers 21.4% vs. six-month average of 11.7%
• directs 16.8% vs. six-month average of 19.6%
• indirects 61.9% vs. six-month average of 68.7%

Auction Grade: F

There is nothing good about this auction. Dealers are stuck with a much greater supply than normal. All components showed lackluster demand including domestic and international.

The 7 year yield spiked up to 3.899%.