The US Treasury 30-Year Bond Sale of $22 billion performed stronger than the recent dismal 3 and 10-year auctions ahead of tomorrow’s CPI report. The report followed the ECB meeting which sent European yields higher, with particular selling in the European peripherals such as Italy against the Bund. The tail was 1.5 basis points with WI level at time of the auction 3.20% and the high yield of 3.185% at the auction. The Fixed Interest desk rated it an B+ after yesterday’s D- on the 10-year auction.
The bid-to-cover ratio of 2.35x was above average 2.31x, as was indirect takedown 69.0% vs 64.9% average. The desk gave an B- rating on the auction.
Auction Highlights
- Duration: 30 Years
- Amount: $19 billion
- High yield 3.185%
- WI level at time of auction 3.200%
- Tail 1.5 basis points
- Bid-Cover Ratio: 2.35X vs. six-month average of 2.31X
- Direct Accepted: 16.9% vs six-month average of 17.4%
- Indirect Accepted: 69.0% vs six-month average of 64.9%
Auction grade: B+
Yields after the auction
- 2-yr: +2 bps to 2.79%
- 3-yr: +3 bps to 2.99%
- 5-yr: +4 bps to 3.07%
- 10-yr: +1 bp to 3.04%
- 30-yr: -1 bp to 3.17%
Yields ahead of the auction
- 2-yr: +3 bps to 2.80%
- 3-yr: +3 bps to 2.99%
- 5-yr: +4 bps to 3.07%
- 10-yr: +2 bps to 3.04%
- 30-yr: +1 bp to 3.18%
Average results of previous 12 auctions: High yield: 2.005%
- High yield: 2.311%
- Bid-to-cover: 2.33
- Indirect bid: 66.0%
- Direct bid: 17.5%
Live From the Pit
From The TradersCommunity US News Desk