Blistering 7 Year Auction Stops Through, Driven By Surge In Foreign Central Bank Demand
This week's preceding 2 and 5 Year auctions, both tailing, were nothing to write home about, or as we characterized them "mediocre." We also said that a big part of the reason may have been the overhang from yesterday's Fed decision. But now that the Fed is out of the picture for 2 months, the real shape of the primary TSY market could show itself and sure enough it did with blistering demand for today's $28 billion in 7 Year paper.