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Concluding the week's trio of coupon auctions, moments ago the Treasury sold $30 billion in 7 Year paper at a yield of 2.809%, "on the screws" with the When Issued, and just like this week's prior 2 and 5-Year auction, a decline from last month's 2.93%. This was the second consecutive "belly" auction that has seen the high yield decline after hitting a cycle high of 2.952% in April.

The internals were average, with Indirects dropping from 65.5% last month to 60.6%, below the 64.7% 6 month average; at the same time Directs increased from 12.9% to 15.2% while Dealers were left with 24.1%.

Overall, a stable auction, if like the prior two, in no way remarkable while confirming that demand for paper remains relatively solid in the primary market, if a little weaker among foreign buyers.