The 7yr Auction was strong. Here are the stats:
- Yield = 2.130 vs a 2.144 forecast
- Bid to Cover 2.7 vs mid 2.5 average
- Indirect Bid 70.6% vs upper 60's average
Purely based on the performance compared to these averages/expectations, the auction is an "A." In the context of the recent weakness, it's less impressive (highest yielding 7yr auction since April).
It seems that the street was geared up for the stronger results based on the rally that preceded it. We'll see if there's any more momentum behind that move. So far, there's been perhaps a fraction of a modicum of a speck of additional buying in bonds, but trading levels haven't yet made significant new progress since the pre-auction update.
