Key insights
- The US Treasury's seven-year note auction yielded 4.175%, slightly above the pre-sale yield. The bid-to-cover ratio matched the one-year average but was the lowest this year. The auction tailed by half a basis point. Prompt WTI crude oil trading around $100 per barrel encouraged a bear-flattening trend, adding slight bearish pressure.
Investing.com -- The US Treasury’s seven-year note auction on Tuesday resulted in a yield of 4.175%, slightly above the pre-sale when-issued yield of 4.170%.
The auction showed a bid-to-cover ratio of 2.51, matching the one-year average but marking the lowest level recorded this year.
Indirect bidder participation reached 58.4%, with dealers and direct bidders accounting for the remaining portion of the offering.
The seven-year sector did not experience notable cheapening on the curve before the auction, despite prompt West Texas Intermediate crude oil trading around $100 per barrel, which has encouraged a bear-flattening trend in the market.
The auction tailed by half a basis point from the when-issued level.
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