US Treasury auctions $22B of 30 year bonds at a high yield of 4.535%

The US treasury auctioned off $22B of 30 year bonds. The folllowing are the results along with the resuilts of the major components compared to the 6 month averages:

• High yield 4.535%
• WI level at the time of the auction 4.523%
• Tail 1.2 bps vs 0.2 basis points aveeage
• Bid to cover 2.39X vs 2.44X average
• Directs (a measure of domestic demand) 19.1% vs 17.8%. average
• Indirects (a measure of international demand) 66.5% vs 67.7%.average
• Dealers 14.4% vs 14.5% average

AUCTION GRADE:C-

There was a positive tail of 1.2bps above 0.2bp average. The Bid to cover was a touch below the average. The good is that the domestic demand was a touch higher than normal. The international demand was a touch less than average, and the dealer takedown was around the average.

Yields are modestly higher with the:

• 2-year 4.169% to 4.172%
• 10-year 4.300% to 4.310%
• 30-year 4.523% to 4.536%

This article was written by Greg Michalowski at www.forexlive.com.