US sells 7-year notes at 2.730% % vs 2.735% WI

  • Results of the $38 billion sale of 7-year notes
  • Prior was 3.280%
  • Bid-to-cover ratio: 2.60 vs 2.48 prior

The belly of the curve had benefited from lower terminal rate expectations. Better to own 7s at 2.73% than 10s at 2.69% and the bids showed up today. That bucks a trend of tails in 3 of the past 4 auctions.

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