Downright Ugly 7 Year Auction Concludes Treasury Sales For 2015

First thing this morning, when previewing the key event of the day, namely today’s auction of $29 billion in 7 Year Treasurys, we said that “with the issue not anywhere close to trading “special” in repo, the risk for a big tail – like in yesterday’s 5Y auction – is high.”
Specifically, we were looking at the 0.45% repo rate on the 7 Year yesterday and today, which was the highest across the entire curve, suggesting absolutely no short covering would take place into today’s auction.

This post was published at Zero Hedge on 12/30/2015.