7-Year Treasury Sales Meet Strong Demand

The U.S. Treasury sold a batch of 7-year Treasuries on Tuesday afternoon, finding robust demand and avoiding Halloween scares.

The auction left some analysts holding their breath, noting that some volatile recent maturing bond sales have tended to roil stock markets.

The nearly $45 billion note sale produced a strong yield of 4.215%, 1.9 basis points lower than pre-auction 7-year note trading. The auction had a bid-to-cover ratio of 2.74, compared with an average of 2.54, according to Weil Hartman, bid strategist at BMO Capital Markets. Non-dealers made 92.5% of bids versus an average of 87.6%.