The US treasury auctioned off $58 billion of the 30 year bonds.
High yield: 4.015%
- Previous 4.314%
- six-month average 4.460%
WI level at the time of the auction: 4.001%
Tail: 1.4 bps
- Previous: 3.1 basis points
- 6-month average: 0.3 basis points
Bid to Cover: 2.38X
- Previous: 2.31X
- 6-month average: 2.39X
Dealers: 15.7%
- Previous: 19.2%
- 6-month average: 15.9%
Directs: 15.7%
- Previous: 15.5%
- 6-month average: 18.6%
Indirects: 68.68%
- Previous: 65.3%
- 6-month average: 65.5%
AUCTION GRADE: D+
The 30 year bond auction was not as successful as the three and 10 year coupon auctions earlier this week.
- There was a positive tail of 1.4 basis points. The only good about that is last month it was a 3.1 basis points
- The bid to cover was on par with the 6 month average
- The Dealers were saddled with the average as well.
- Domestic demand was less than the average
- International demand was above the average providing some positive.
The grade is below average but last month was much worse.
