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US 7-Year Bond Sale: High Yield Rate: 4.908%; Bid-Cover Ratio: 2.700
US 7-Year Bond Sale:
— LiveSquawk (@LiveSquawk) October 26, 2023
- High Yield Rate: 4.908% (prev 4.673%)
- Bid-Cover Ratio: 2.700 (prev 2.470)
- Direct Accepted: 18.4% (prev 19.9%)
- Indirect Accepted: 70.6% (prev 65.5%)
- WI: 4.910%
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Yields Slide After Stellar 7Y Auction With Highest Bid-To-Cover Since March 2020
After two ugly auctions, at 1pm ET the Treasury concluded the week's coupon issuance with the sale of $38BN in 7 year paper in what was actually a rather recent auction. The high yield of 4.908% was above last month's 4.673% and was the highest on record, but more importantly it stopped through the When Issued 4.910% by 0.2bps, a reversal of last month's modest 0.3bps tail. The bid to cover of 2.704 was a solid improvement to last month's 2.465 and was the highest going back to the March 2020 bond market rollercoaster. The internals were also solid with Indirects awarded 70.6%, just above the recent average of 70.4%, ... (full story)