• 7yr treasury auction
  • 2.281 vs 2.292 forecast (when-issued yield at 1pm)
  • 2.54 bid-to-cover vs 2.50  average
  • 64.5% indirect bid vs 60.7% average

These are great stats considering bonds still haven't been keen to sell-off too aggressively in the hours leading up to auctions this week.  On the other hand, this is just a measly 7yr auction--probably the least meaningful apart from 3yr Treasuries or shorter-term bill auctions.

Still, it's been enough to fuel slightly better buying after 1pm, which is helping bonds hold near 'unchanged' levels as opposed to hovering in modestly weaker territory.

Negative reprice risk is gone now, with MBS close to the highs of the day.