- Prior was 4.650%
- Bid to cover 2.58 vs 2.43 prior
Yields steadily fell today ahead of the auction after a grind higher yesterday. We haven’t seen a coupon auction tail since the 3-year offering on June 10th. Since then, 2s, 3s (just now) 5s, 10s, 20s, 30s, and 5-year TIPS all stopped-through.
I wouldn't expect much of a follow-through here in bonds or USD/JPY but it underscores that there are real money buyers of bonds waiting in the weeds. The question is: Will that change if PCE on Friday runs hot?
