FAST FIVE: Gruesome 7Y Auction Sees Biggest Tail Since "That" Feb'21 Sale Which Nuked Bonds
Gruesome 7Y Auction Sees Biggest Tail Since “That” Feb'21 Sale Which Nuked Bonds After a subpar and tailing 2Y auction and a mediocre and tailing 5Y auction both of which took place on Monday in the holiday-shortened week, moments ago we got the week's final coupon issuance in the form of $35BN in 7Y paper.
In fact, it was almost as ugly as that infamous Feb 2021 7Y auction which sparked a brief selling panic across the Treasury market.
This was the biggest 7Y tail since that infamous Feb 2021 seven year auction which sparked a flash crash across the curve and a mini freak out in the rate market.
Obviously it was below the six-auction average of 2.57.
In short, this was a horrific 7Y auction, and only the fact that prices rallied sharply into the auction deadline prevented what would have been a painful rout on any other day.