The US treasury will auction off $22 billion of 30 year bonds at the top of the hour. The 6-month averages of the major components shows:
- Tail 0.9 basis points
- Bid to Cover 2 38X
- Directs (domestic buyers) 18.4%
- Indirect (international buyers): 65.4%
- Dealers: 16.2%
At the last auction last month, the high yield was at 4.015%. Since then yields have moved higher. The current yield is 4.40% despite the 50 basis point cut at the last Fed meeting. Since then, the data has been stronger than expected with jobs showing a strong gain last week The 30 year yield moved up from 4.16% low on Friday:
