The US Treasury 30-Year Bond Sale of $22 billion performed stronger than the recent 3 and 10-year auction after today’s PPI report. The tail was 0.9 basis points with WI level at time of the auction 3.006% and the high yield of 2.997% at the auction. The Fixed Interest desk rated it an A after yesterday’s C- 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 2.997%
- WI level at time of auction 3.006%
- Tail 0.9 basis points
- Bid-Cover Ratio: 2.38X vs. six-month average of 2.31X
- Direct Accepted: 16.6% vs six-month average of 17.4%
- Indirect Accepted: 69.66% vs six-month average of 64.9%
- Dealers 13.7% vs six-month average of 17.7%
Auction grade: A
Yields after the auction
- 2-yr: -7 bps to 2.57%
- 3-yr: -5 bps to 2.77%
- 5-yr: -5 bps to 2.83%
- 10-yr: -8 bps to 2.85%
- 30-yr: -5 bps to 2.99%
Yields ahead of the auction
- 2-yr: -6 bps to 2.58%
- 3-yr: -3 bps to 2.79%
- 5-yr: -3 bps to 2.85%
- 10-yr: -6 bps to 2.87%
- 30-yr: -3 bps to 3.01%
Average results of previous 12 auctions: High yield: 2.005%
- High yield: 2.167%
- Bid-to-cover: 2.30
- Indirect bid: 64.6%
- Direct bid: 17.9%
Live From the Pit
From The TradersCommunity US News Desk