- Prior was 3.921%
- The notes traded at 3.538% in the when issued market before the sale
- Bid to cover 2.690 vs 2.450 prior
The prior three 7-year auctions tailed but yesterday's 5-year sale stopped through strongly. The story is strong indirect bids and there's evidence that foreign buyers of US Treasuries are stepping up purchases, perhaps due to fear of BOJ-inspired volatility or uncertainty in Europe.
This is US dollar negative as it could weigh on yields across the curve.
