Ugly, Tailing 7 Year Auction Spooks Market As Foreign Buyers Flee
After one poor and one mediocre auction, today's sale of $28 billion in 7 year paper was a fiasco, stopping at 2.23%, a massive 1.7bps tail to the 2.213% When Issued, if below last month's 2.28% courtesy of the ongoing yield curve flattening which increasingly include the belly of the curve.
The internals were just as atrocious, with the bid-to-cover sliding to 2.36 from 2.391 last month, and far below the 6 auction average of 2.52.