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.