U.S. Treasuries held just below their best levels of the session in response to the recent completion of the $14 billion 20-year Treasury bond reopening, which was met with lukewarm demand. The 3- and 5-year notes trading slightly ahead of other tenors. The high yield tailed the when-issued yield by 0.2 bps with the bid-to-cover ratio and indirect takedown just above average. The desk gave a C rating on the auction. The S&P 500 and Nasdaq 100 are just below its best level of the day.
Today’s $14 bln 20-yr bond -0.2 basis point indicative of lukewarm demand. The desk gave a C rating on the auction.
- The domestic demand was below its six-month average indicative of softer domestic demand
- International demand (indirect) was also comfortably above the six-month average
- Primary dealers were left with just over than 10% versus normal around 14.3%
Auction Highlights
- Duration: 20 Years
- Amount: $14 billion
- High yield 3.488%
- Tail +0.2 basis points. The 6-month averages -0.6 basis points
- Bid to cover 2.60X vs. six-month average of 2.55X
- Dealers 12.4% vs. six-month average of 13.0%
- Directs 20.2% vs. six-month average of 18.7% six-month average
- Indirects 67.4% vs. six-month average of 68.3%
Auction grade: C
Yields after the auction
- 2-yr: -14 bps to 3.08%
- 3-yr: -16 bps to 3.20%
- 5-yr: -16 bps to 3.22%
- 10-yr: -16 bps to 3.15%
- 30-yr: -15 bps to 3.24%
Prior auction results:
- High yield: 3.290%
- Bid-to-cover: 2.50
- Indirect bid: 70.6%
- Direct bid: 16.4%
Average results of previous 12 auctions: High yield: 2.005%
- High yield: 2.253%
- Bid-to-cover: 2.43
- Indirect bid: 64.2%
- Direct bid: 18.5%
Live From the Pit
From The TradersCommunity US News Desk