Solid 7 yr auction

The 7 yr note auction was solid. The yield of 4.194% was about 2 bps below the when issued pricing. The bid to cover of 2.69 was above the previous 12 month average of 2.61 and the best in 5 months. Also, direct and indirect bidders took a combined 95% of the auction, the most since 2009 that I have data on, leaving dealers with just 5% of the supply.

Bottom line, Treasury yields are at the lows of the day in response. I wish I could ask the buyers what precipitated the strong demand. Worried about economic growth? Not worried about the US budget talks and its impact on debts and deficits? Inflation expected to further recede? Less tariff induced inflation concerns? Is today just a seasonal flow thing?