7-year Treasury auction in focus after poor 5-year sale

The 7-year note auction draws unusual scrutiny after Wednesday's 5-year sale was the second weakest in 15 years. Citi strategist warns of risk that today's auction could also go poorly. The yield on 7-year notes is currently around 5.09%, up 0.57 percentage point from the prior auction. Strong competition from corporate debt, including SoftBank's 9.75% junk bond and distressed yields near 16%, could weigh on Treasury demand.