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