Bid to cover at 2.31 vs 2.32 at the previous auction
Other auction statistics
- $12b 29 year 10 month bonds were sold at a high yield of 2.936%
- 30.56% of the bids were at the highs
- The high yield was less than 1 bp above it's 1 PM WI level
- Primary dealers take 31.94%
- Direct 6.38%. Indirect 61.68%
The yield of the 30 year had moved higher in pre-auction trading and traded to a new high yield of 2.9367% shortly after the announcement. The yield is back down to 2.9242%.
Looking at the daily yield chart, the 100 day MA comes in at 2.9453%. The high yields this week have been stalling against that MA line. A move above would be more bullish for yields (bearish for bond prices). The 200 day MA is not far away at 2.9040%. The price has also traded above and below that MA this week. Decision time for the 30 year bond traders. Do yields move higher, or do they come back off ahead of the 100 day MA and the natural 3.0% level?
