The week's final coupon auction per the truncated pre-FOMC schedule has come and gone, and like yesterday's 2Y and 5Y, was also mediocre at best.

The sale of $44BN in 7Y paper stopped at a high yield of 4.175%, down from 4.255% in March; and like the week's previous auctions, the 7Y also tailed the 4.170% When Issued by 0.5bps, which makes it 4 auctions that have not stopped through in a row.

The bid to cover was better, rising to 2.513 from 2.432; this was the highest bid to cover since last June, and obviously well above the 2.46 six auction average.

The internals, on the other hand, were softer, with Indirects awarded 58.35%, down from 62.35% and below the 61.28% recent average. And with Directs taking a surprisingly high 30.0%, up from 25.0% and the highest since December, Dealers were left with 11.6%, right on top of the recent average.

Overall, this was another medicore auction which in light of the recent move higher in rates could have been worse. 

As with the week's previous auctions there was no notable reaction to today's sale with markets far more focused on the price of oil and developments in Iran.