Results of the $16 billion sale of 30-year bonds
- Two basis point tail -- bullish USD
- Traded at 2.860% on the bid side in the when-issued market ahead of the results
- Previous sale was 3.084%
- Sold at a record low of 2.43% back in January 2015
- Bid to cover at 2.26
- Prior bid-to-cover was 2.23
The market was spooked by a low bid-to-cover in yesterday's 10-year auction and that halted the relentless bid in bonds and helped the recovery in risk assets.
That's a big miss for a long bond auction. Real money demand didn't materialize and it looks like smart money isn't as worried about China as we thought, nor is China on the bid.
