Tuesday afternoon’s sale of 7-year Treasury notes was met with poor to lukewarm demand. The $39 billion auction was a “fairly ugly auction based on where things were at 1 p.m. Eastern time,” with primary dealers taking a larger-than-usual chunk of the allocation, according to Tom di Galoma, co-head of global rates trading for BTIG in New York. Most Treasury yields remained broadly lower immediately after the auction results came in, led by a decline in the 2-year rate. The sale followed Monday’s relatively soft $54 billion sale of 2-year notes and a solid $55 billion sale of 5-year maturities. (full story)