30 November 2023
Tuesday’s auction of $39 billion in 7-year Treasury notes received weak demand, marking a notably poor reception compared to expectations set earlier in the day. Primary dealers absorbed a significant portion of the notes, indicating lackluster interest from a broader range of investors. This follows a pattern of varied responses to recent Treasury sales, including Monday’s somewhat tepid $54 billion offering of 2-year notes and a more successful $55 billion sale of 5-year maturities. The overall market reaction saw most Treasury yields, particularly the 2-year rate, remaining generally lower after the auction results were announced.