U.S. Treasury auctions of $22 billion of the 30 year bonds at a high yield of 4.734%

• High-yield 4.734%
• WI level at the time of the auction 4.73%
• Tail 0.4 basis points versus 6 month average -0.2 basis points.
• Bid to cover 2.38X versus 6 month average 2.37X
• Directs 26.9% versus 6 month average 25.8%
• Indirects 65.5% versus 6 month average 61.2%
• Dealers 8.7% versus 6 month average of 13.0%

Auction grade: B

There was a positive tail of 0.4 basis point, which is higher than the six-month average. The bid to cover was near the average, but overall the demand was strong, with both domestic and international demand higher than the average. That left a small amount for the dealers to distribute (only 8.7%. Overall, I give the auction a grade of B.