Treasury 7-year auction outlook:
Treasury 7-year auction outlook: the $31 B sale, and the $17 B 2-year FRN, complete the week's $282 B in auctions, with rather average results for the first two legs. Yields are little changed after the small in the market earlier has faded, and the when issued yield is steady at 2.845%. A stop there would be about 8.5 bps richer than the 2.930% from July, but would still be one of the highest award rates going back to 2011. The 2s-7s spread has steepened slightly this week, and could be supportive. Meanwhile, the volume was boosted by $1 B and is the highest since May 2010, and will be increased further in coming months. The note is likely to benefit from the advent of month-end, with Barclays estimating its extension at 0.11 years, and ahead of the upcoming Labor Day holiday. Note that The $30 B July auction stopped at 2.930% and had a 2.49 cover (2.52 average) and a 64.6% indirect bid (64.2% average).