Treasury's $31 B 7-year auction was well received
Treasury's $31 B 7-year auction was well received, as expected, and indeed was the best of the three. The note was awarded at 2.844%, through the 2.850% at the bid deadline, as it richened a bit from the 2.855% where it traded most of the day. It compares to the 2.930% from July. There were nearly $82.2 B in bids for a 2.65 cover, better than both last month's 2.49 and the 2.52 average. Indirect bidders took 59.5%, a little lite compared to 64.6% and the 64.2% average. But, direct bidders were awarded a hefty 19.0% versus 12.0%, tying the largest amount going back to August 2014. Primary dealers accepted 21.5% from 23.4%. This completes the $282 B in auctions, and that's usually a plus for bond bulls.