7-Year Treasury Auction Goes At Record Low Under 1%

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