US treasury sells $40 billion of seven-year notes at a high yield of 3.859%

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US treasury sells $40 billion of seven-year notes at a high yield of 3.859%

• WI level at the time of the auction 3.835%
• High-yield 3.859%
• Tail: +2.4 basis points
• Bid to cover 2.5X. The last option came in at 2.44X
• Indirect's 63.7 which was the weakest since March
• Directs 19.37%
• Dealers 16.19%

Not a particularly strong auction. Rick Santelli on CNBC gave him a grade of D+.

US stocks dipped a little bit after the report but bounced back. Major indices are still up marginally (0.14% to 0.18%). The S&P indexes within about 8 points it's all-time high closing level. The Dow Industrial Average is on pace to close at another record level.

Overall, US yields are at record higher across-the-board:

• 2-year 4.280%, +3.9 basis points
• 10 year 3.846% +5.7 basis points
• 30-year 3.987% +4.2 basis points

The EURUSD is trading to new lows and approaches is 100 hour moving average at $1.10458.

USDJPY is testing the low of a swing area between 141.41 and 141.61.

                This article was written by Greg Michalowski at www.forexlive.com.

Source: US treasury sells $40 billion of seven-year notes at a high yield of 3.859%

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