Solid U.S. 30-year Treasury Bond Auction with High Yield of 2.375% Follows Screeching CPI

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