Treasury 7-Year Notes: 3.374%; 83.04% At High
WASHINGTON (Dow Jones)--The U.S. Treasury awarded $32.00 billion in seven-year notes at Thursday's auction at a high rate of 3.374%.
The Treasury received bids totaling $83.37 billion and accepted $32.00 billion. Primary dealers were awarded $15.98 billion, while indirect bidders--a category that includes foreign central banks--were awarded $13.38 billion.
Indirect bidders got 42% of the total competitive; direct bidders received 8%.
The bid-to-cover ratio, an indication of demand, was 2.61, Treasury said.
Tenders submitted at the high yield were allotted 83.04%.
The dollar price was 99.232610, and the coupon rate was set at 3.250%, or 3 1/4%.
The median rate was 3.289%; that is, 50% of the amount of accepted competitive bids were tendered at or below that rate.
Of the competitive bids accepted, 5% were tendered at or below the rate of 3.229%.
The issue is dated March 31, 2010, and matures on March 31, 2017. The CUSIP number on the seven-year notes is 912828MV9.
US TSYS/7Y: Still very choppy market action, Tsys slide lower after the 7y auction but then brief redistribution selling so far, but then a bounce higher and now market in a lower range. "Where we go from here will depend on MBS and on swaps," said one trader eyeing those sister markets.
RBS head of US Tsys strategy Bill O'Donnell noted that the
7-year auction proved a "weak auction again" with 7Y bid/cover "decent against long-term averages but a little weak versus recent averages.
The 50% Dealer award was the highest since the Treasury changed the bidder classification rules last June as both both Direct and Indirect bidders had relatively light books. The swirling uncertainty of the last few days, Japan's year-end and eroding market liquidity all teamed to make this a weaker than average auction."
Provided by: Market News International |
