7-Year Treasury Auction Goes At Record Low Under 1%
The 7-Year Treasury Note auction conducted today appears to have gone off at a record low yield for the auction. The Bid/Cover ratio was 2.64, which was a tad soft, but the coupon rate of 0.875% went off at a…
Bloomberg noted, “Mixed are the results of the Treasury’s monthly 7-year note auction where coverage, at 2.64, is respectable but a little softer than trend while the stop-out rate of 0.954 percent came in roughly at expectations. A slight positive is a 47 percent takedown by dealers, a moderate share of the $29 billion auction that points to respectable participation from buy-and-hold investors.”
This appears to be the first ever 7-year Treasury auction that went off with a yield of under 1%. When you see yields this low, it is no wonder that we are witnessing a dividend bubble right now.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
