Results of the US 30-year Treasury auction:
- The bonds were trading at 2.570% on the bid side in the when-issued market
- $13 billion 30-year sale
- Bid to cover at 2.18, the same as the last auction and matching the lowest in 10 months
- 10-auction avg on bid-to-cover 2.46
- Lowest direct bid since March 2013
US 30-year yields were at 2.51% at the start of US trading but have been steadily moving up and that's helped to lift USD/JPY to 120.39 from 120.00.
Big tail. This is driving USD/JPY higher, to 120.53. The market sniffed it out but wasn't ready for just how weak it would be.
US 30-year yields today. Every tick higher makes USD more attractive.
People wonder why we cover Treasury auctions. This is why.