Treasury Yields Explode After Catastrophic, Tailing 7Y Auction | ZeroHedge
Treasury Yields Explode After Catastrophic, Tailing 7Y Auction
BY TYLER DURDEN
THURSDAY, FEB 25, 2021 - 13:06
This is as close to a failed auction as we have ever come...
Ahead of today's closely watched 7Y treasury auction, where the bulk of the recent Treasury rout has been concentrated as traders hammered the belly of the curve, we said that "
If the 7Y tails a lot, watch out below" as that would only add insult to today's furious selloff injury. Well, that's precisely what happened, because with the 7Y pricing at 1.195%, this was a whopping 4.1bps tail to the 1.151% When Issued.
The auction was, in a word,
catastrophic.
Starting at the top, the
bid to cover tumbled from 2.305 to 2.045,
the lowest on record, and far, far below the 2.35 recent average.
UPs, es lo mas cercano que han estado a una subasta fallida....