29 billion of 7 year notes just hit the tape to yield 1.970%. Demand was very good as 50% of the issue was taken by Indirect Bidders. Bid to cover ratios came in at 3.06 to 1. Both of those measures were above average. The issue was also “bid through the screen”, meaning that some got shut out even if they had at the money bids in. That is a sign of strong demand. All treasury maturities have reacted in bullish fashion. Currently, the 10 year note is up 16/32’s. Mortgage backs have followed suit.
Signs of strong demand for 7 year notes
About the Author: Max Leaman Austin Mortgage
Great Rates, Low Fees, Close on Time® – (800) 301-3405
Since 2001, Leaman Team has helped clients to purchase, refinance and renovate. The biggest distinction between lenders is their honesty, customer service, and ability to close on time.