Treasury $32 B 7-year auction preview:
Treasury $32 B 7-year auction preview: this is the final sale of the bunch and the offering should go well amid ongoing demand for Treasuries, and core sovereigns for that matter. The when issued yield is fractionally cheaper at 2.420% after the stronger durables report. The yield is about 14 bps above March's stop, but wold be the lowest stop since December 2017. The note is mixed on the curve, with the 5s7s10s fly around the middle of the year's average, though it's flatter versus the 5s and steeper versus 10s. Indirect bidding should remain solid, however, as yields are still negative in many regions. The 7-year offers a 27 bp yield pick up to the German note. The Fed's patience stance and still benign inflation are supportive, while some month-end buying could underpin too, with the Bloomberg Barclays duration index extending out 0.07 years. The March auction stopped at 2.281% and saw a 2.54 cover (2.53 average) and a 64.5% indirect bid (62.0% average). Direct bidders took 20.7% (17.0% average), with primary dealers accepting 14.8% (20.6% average).