Treasury Auctions (5,7,10,20,30 year)
Yesterday’s 7-year Treasury Note auction didn’t go as well as Wednesday’s 5-year Note sale. The benchmarks showed investors were more interested in the 5-year Notes than the 7-year Notes, revealing an average demand compared to other recent sales of the same securities. It is unlikely that yesterday’s afternoon bond strength is related to the auction results, but we did see a favorable move shortly after they were announced at 1:00 PM ET. We feel it is more or less a coincidence and are labeling the auction as neutral for rates.