The US treasury auctioned off $25 billion of 30 year bonds at high yield of 4.635%

The US treasury auctioned off $25 billion of 30-year bonds. The results vs the 6-month averages shows.

• High Yield: 4.635

  • Previous: 4.671%
  • Six-auction average: 4.451%
• WI level at the time of the auction: 4.642%

• Tail: -0.7 bps

  • Previous: 1.0 bps
  • Six-auction average: 0.3 bps

• Bid-to-Cover: 2.41X

  • Previous: 2.37x
  • Six-auction average: 2.38x

• Dealers: 15.36%

  • Previous: 17.3%
  • Six-auction average: 16.6%

• Directs: 19.78%

  • Previous: 18.3%
  • Six-auction average: 16.6%

• Indirects: 64.86%

  • Previous: 64.4%
  • Six-auction average: 66.8%

OVERALL GRADE: B

Summary: There was a negative tail vs 0.3BP average. The bid-to-cover was above the average indicative of better than average demand. THe domestic buyers was stronger than the average, but the international demand was less than average.