The U.S. Treasury auctioned off $22 billion of 30 year bonds at a high yield of
- WI at the time of the auction was 1.863%
- Tail 3.2 basis points
- Bid to cover 2.22X versus six month average of 2.29X
- Directs 18.5% vs six month average of 17.6%
- Indirects 60.8 versus six month average of 64.2%
- Dealers 20.71% versus the six month average of 18.2%
Auction Grade: D
The only reason it wasn't a failure is last month the same 30 year auction had a tail of 5.2 basis points.
High Low lights:
A big tail. Foreign demand was weakish. Dealers own more than the 6-month average. If there is ANY good, it is that the domestic demand was higher than the 6 month average (that helped the grade too).
Rick Santelli on CNBC gave it a D- grade.
