U.S. 7-year note auction preview: into the teeth of a equity rally U.S. 7-year note auction preview: into the teeth of a equity rally the Treasury's $29 B sale of 7-year notes faces some formidable headwinds, though with a concession built back into the issue over 1.92% compared to 1.65% Monday lows there could also be some relief demand in its wake. Demand for the series (2s and 5s) has been poor this week and confirmed China sales of Treasuries to pay for FX intervention has to be noted, though foreign indirect demand has otherwise been high during the market turmoil. Recent history has been favorable to the 7-year, however, with stop-throughs 75% of the time, though the last sale tailed at 2.021%, while drawing a 2.47 cover (2.46 average) and 49.1% indirect bid (52.2% average) for reference. Perhaps third time is a charm? Maybe not while below 2.0%.