The US Treasury 30-Year Bond Sale of $20 billion performed stronger than the recent 3- and 10-year auction after today’s CPI report. The tail was -2.4 basis points with WI level at time of the auction 2.339% and the high yield of 2.375% at the auction.
The bid-to-cover ratio of 2.46x was above average 2.32x, as was indirect takedown 71.52% vs 65.5% average. The desk gave an A rating on the auction.
Auction Highlights
- Duration: 30 Years
- Amount: $20 billion
- High yield 2.375%
- WI level at time of auction 2.399%
- Tail -2.4 basis points
- Bid-Cover Ratio: 2.46X (prev 2.32)
- Direct Accepted: 16.42% (prev 17.3%)
- Indirect Accepted: 71.52% (prev 65.5%)
- Dealers 12.06% (prev 17.2 %)
Auction grade: A
Yields after the auction
- 2-yr: +6 bps to 1.73%
- 3-yr: +4 bps to 1.89%
- 5-yr: +6 bps to 1.94%
- 10-yr: +6 bps to 2.01%
- 30-yr: +8 bps to 2.38%
Average results of previous 12 auctions: High yield: 2.005%
- High yield: 2.119%
- Bid-to-cover: 2.30
- Indirect bid: 63.4%
- Direct bid: 18.5%
Live From the Pit
From The TradersCommunity US News Desk