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      US Treasury Auctions $44 Billion in Seven-Year Notes at 5.085% Yield

      The U.S. Treasury successfully auctioned $44 billion in seven-year notes on September 24, 2026, with a high yield of 5.085%. This yield was slightly above the when-issued (WI) level of 5.078% at the time of the auction, indicating that buyers required a higher return than anticipated.

      The auction's performance was assessed with a grade of C−, reflecting a softer outcome compared to average results. The tail, or the difference between the high yield and the WI level, was recorded at 0.7 basis points, exceeding the average tail of 0.2 basis points. Additionally, the bid-to-cover ratio was 2.42 times, lower than the average of 2.49 times, suggesting reduced overall demand for the notes.

      Direct bidders accounted for 30.27% of the auction, significantly higher than the average of 23.3%, while indirect bidders represented 57.2%, falling short of the average of 64.6%. Dealers took a slightly larger share at 12.53%, compared to the average of 12.1%. These dynamics contributed to the overall assessment of the auction as below average.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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