Treasury $32 B 7-year auction preview:
Treasury $32 B 7-year auction preview: the auction should benefit from the modest concession today. The wi is 1 bp cheaper at 2.425%. The little backup could be a nice buying opportunity for traders. The yield is about 14 bps above March's stop, although it would be the second lowest stop since December 2017. The note is mixed on the curve, though not especially attractive, 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 about 273 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).