30-year Treasury Bond Auction with High Yield of 2.815% Follows Screeching PPI

The US Treasury 30-Year Bond Sale of $20 billion performed stronger than the recent 3- and 10-year auction after today’s Scorching report. The tail was 0.9 basis points with WI level at time of the auction 2.806% and the high yield of 2.815% at the auction. The Fixed Interest desk rated it a B- after yesterday’s F on the 10-year auction.

The bid-to-cover ratio of 2.30x was below average 2.31x, as was indirect takedown 65.2% vs 65.8% average. The desk gave an B- rating on the auction.

Auction Highlights

  • Duration: 30 Years
  • Amount:  $20 billion
  • High yield 2.815%
  • WI level at time of auction 2.806%
  • Tail 0.9 basis points
  • Bid-Cover Ratio: 2.30X six-month average of 2.31X
  • Direct Accepted: 18.9% six-month average of 17.1%
  • Indirect Accepted: six-month average of 65.8%
  • Dealers 12.06% six-month average of 17.1%

Auction grade: B-

Yields after the auction

  • 2-yr: -6 bps to 2.33%
  • 3-yr: -5 bps to 2.55%
  • 5-yr: -5 bps to 2.63%
  • 10-yr: -5 bps to 2.68%
  • 30-yr: -3 bps to 2.79%

Yields ahead of the auction

  • 2-yr: -8 bps to 2.31%
  • 3-yr: -8 bps to 2.52%
  • 5-yr: -8 bps to 2.60%
  • 10-yr: -6 bps to 2.66%
  • 30-yr: -5 bps to 2.78%

Average results of previous 12 auctions: High yield: 2.005%

  • High yield: 2.126%
  • Bid-to-cover: 2.31
  • Indirect bid: 64.3%
  • Direct bid: 18.1%

Live From the Pit

From The TradersCommunity US News Desk

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