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 points6-month average: 0.3 basis points
Bid to Cover: 2.38X
Previous: 2.31X6-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 pointsThe bid to cover was on par with the 6 month averageThe Dealers were saddled with the average as well.Domestic demand was less than the averageInternational demand was above the average providing some positive.
The grade is below average but last month was much worse.
This article was written by Greg Michalowski at www.forexlive.com.
