Solid auction

With the big back up in long rates with Treasuries now oversold as stated this morning (and thus expecting a bounce) and ahead of the jobs data, the 7 yr note auction was solid. The yield of 4.215% was 2 bps below the when issued pricing. The bid to cover ratio of 2.74 was the highest since the global Covid panic in late March 2020. Before that, go back 12 years to see a higher ratio. Also, direct and indirect bidders took down a combined 92.5% of the auction, the most since January 2023.