US treasury to auction off $44 billion of 7 year notes at the top of the hour

The US treasury will auction off $44 billion of 7-year notes at the top of the hour. The auction will complete the coupon issuances for the week ahead of the FOMC decision tomorrow at 2 PM. The FOMC is scheduled to keep rates unchanged after moving them lower by 100 basis points in 2024.

The treasury auctioned off 2 and 5-year notes yesterday. The 5 year note was met with better demand than the 2 year note.

The 7 year note results will be compared against the six-month averages to determine relative demand and the Wi level at the time of the auction:

• Tail: -1.0 basis points
• Bid to Cover: 2.66X
• DIrects (Domestic demand): 16.3%
• Indirects (international demand): 74.0%
• Dealers (they take the rest): 9.7%

This article was written by Greg Michalowski at www.forexlive.com.