US Treasury suffering auction shockers
The US Treasury held a seven year auction on Thursday, coming in the midst of a sharp sell-off in the Treasury curve. The result was the Treasury’s worst bid to cover ratio since 2009.
The US Treasury offered $62bn after receiving bids of $126.78bn, implying a bid to cover ratio of 2.04. One rates analyst called it “a shocker”.
The poor results drove US 10 year Treasury yields briefly over 1.6%, though they have since subsided to 1.46%."It was a weak day ...