US sells USD 44bln of 7-year notes; tail 0.2bps

• High Yield: 4.473% (prev. 4.260%, six-auction avg. 4.131%); WI: 4.471%


• Tail: 0.2bps (prev. 0.0bps, six-auction avg. 0.3bps)


• Bid-to-Cover: 2.49x (prev. 2.50x, six-auction avg. 2.48x)


• Dealers: 13% (prev. 12.8%, six-auction avg. 11.4%)


• Directs: 16.9% (prev. 29.7%, six-auction avg. 24.0%)


• Indirects: 70.1% (prev. 57.6%, six-auction avg. 64.5%)

Analysis details (19:59)

Overall, an average 7-year note auction. The US Treasury sold USD 44bln of 7-year notes at a high yield of 4.473%, above the prior auction's 4.260% and the six-auction average of 4.131%. The auction tailed the when-issued yield of 4.471% by 0.2bps, slightly softer than the previous auction, which stopped on the screws, but firmer than the six-auction average 0.3bp tail.

Demand metrics were broadly in line with recent auctions. The bid-to-cover ratio edged down to 2.49x from 2.50x, although it remained marginally above the six-auction average of 2.48x. Dealers were left with 13.0% of the issue, little changed from 12.8% previously but above the 11.4% six-auction average, pointing to broadly average end-user demand.

The bidder breakdown saw a notable shift between direct and indirect participation. Direct bidders took just 16.9% of the auction, down sharply from 29.7% previously and well below the 24.0% six-auction average. However, this was more than offset by a strong pickup in indirect demand, which rose to 70.1% from 57.6%, comfortably above the 64.5% six-auction average.

Overall, the auction was broadly average. The headline metrics were largely in line with recent auctions, while a sharp decline in direct demand was offset by a notable pickup in indirect participation, leaving the overall result broadly balanced.

28 Jul 2026 - 18:02- ForexImportant- Source: Treasury Direct