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Third Time’s the Charm for the Treasury?

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Coming up, traders will buy $44 billion worth of U.S. government bonds that expire in seven years at 1 p.m. Eastern.

The sale comes after the Treasury auctioned five-year notes on Monday, which awarded a yield that was 0.9 basis points above the rate at the bidding deadline. When the Treasury offers a higher rate, Wall Street typically considers it as a poor auction because it suggests the Treasury had to entice buyers by offering higher yields. One basis point is equal to 0.01%.

The sale of seven-year notes is the third notable bond auction this week and wraps up the series of key auctions for this month.

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