7 yr auction as weak as the 5 yr

Similar to yesterday’s poor 5 yr auction, today’s 7 yr was weak as well and after a mediocre 2 yr. The yield of 4.65% was more than 1 bp above the when issued. The bid to cover of 2.43 was under the 12 month average of 2.56 and the lowest since April 2023. Lastly, dealers were left with 17% of the auction, the most since November.

In response, the 7 yr yield is at the high of the day, (see below intraday move after auction results) and at a 4 week high.