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4/25, 7:29 PM (Source: TeleTrader)
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Yield reaches 2.426% in US seven-year note sale

The offer of debt due at the end of April 2025 by the Department of the Treasury in Washington attracted commitments that were 2.49 times higher, near the short-term trend line. The auction held on Thursday was for $32 billion in notes, while one month before the same amount was sold with a bid-to-cover ratio of 2.54. The high yield, most widely tracked measure, came in at 2.426% or a whopping 14.5 basis points higher than in the operation on March 28.

The final yield is at the closest eighth of a percent below the high yield – 2.375% in today's case, and it compares to the so-called when-issued level of 2.425%. The government awarded 52.62% of bids at the highest mark.

Indirect bidders – a category including foreign central banks and international monetary authorities, purchased 60.4% of the accepted competitive tenders. Compared to 64.5% from the last round, it points to a decline in foreign bids. Direct participants took 19.1%, a share 1.6 percentage points smaller than last month. Primary dealers took the remaining 20.6% on a rounded basis, the most since October for the debt format. Last time their cut was 14.8%.

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