The auction of 7-year Treasury notes on Tuesday afternoon did not receive strong demand, with primary dealers taking a larger portion of the allocation than usual. According to Tom di Galoma, co-head of global rates trading for BTIG in New York, the auction was considered a “fairly ugly auction” based on the market conditions at the time. Despite this, most Treasury yields remained slightly lower after the auction, primarily due to a decline in the 2-year rate. This auction followed Monday’s relatively soft sale of 2-year notes and a solid sale of 5-year maturities.
Stock Market Performance
While many stocks have struggled in recent years, there are some notable exceptions. Shares of some of the best businesses in the U.S. continue to perform well despite challenging market conditions.
The Treasury auction results indicated lukewarm demand, with primary dealers taking a larger portion of the allocation. However, Treasury yields remained broadly lower after the auction. In the stock market, certain U.S. businesses have managed to thrive amid overall market difficulties.