US treasury sells $44 billion of 7 year notes at a high yield of 5.085%

WI level at the time of the auction: 5.078% High yield: 5.085% Bid to cover: 2.42X vs the average of 2.49X Indirects: 57.2% vs the average of 64.6% Auction grade: C− The auction was a little softer than average. The 0.7-basis-point tail was wider than the 0.2-basis-point average, meaning buyers required a slightly higher yield than the WI level going into the sale. The bid to cover was also below average. Direct demand was strong, but indirect demand fell well short of its average, while dealers took a slightly larger share. Those results tilt the grade below the C that represents an average auction, though the differences in the tail and dealer share were modest. This article was written by Greg Michalowski at investinglive.com.