U.S. Treasury auctions off $22 billion of 30 year bonds at a high yield of 4.405%

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• High-yield
  4.405%
  versus
  4.403%
  last
  month
• WI
  at
  the
  time
  of
  the
  auction
  4.383%
• Tail
  +2.2
  basis
  points
  vs
  six-month
  average
  of
  -0.9
  basis
  points
• Bid
  to
  Cover
  2.30X
  vs
  six
  month
  average
  of
  2.42X
• Dealers
  15.88%
  vs
  six-month
  average
  of
  14.9%
• Directs
  23.36%
  vs
  six-month
  average
  of
  17.5%
• Indirects
  60.76%
  vs
  six-month
  average
  of
  67.6%

AUCTION
GRADE:
D+

The
30-year
bond
auction
was
mixed
but
mostly
worse
than
the
six-month
average
of
the
components

The
Bad:

• Tail
  was
  2.2
  basis
  points
  above
  the
  WI
  level
  at
  the
  time
  of
  the
  auction
• Bid
  to
  cover
  was
  less
  than
  the
  6
  -month
  average
• international
  demand
  (indirect)
  was
  much
  lower
  than
  the
  six
  month
  average

The
Good:

• Domestic
  demand
  was
  much
  stronger
  than
  the
  six-month
  average

Overall,
the
grade
has
to
be
less
than
the
average
but
the
domestic
demand
saves
the
day.

Meanwhile,
stocks
remain
under
pressure
with
the
S&P
and
NASDAQ
and
a
fairing
the
worst.
The
S&P
is
down
-51
points
or
-0.91%.
The
NASDAQ
index
is
down
-345
points
or
-1.86%.

The
Dow
industrial
average
is
still
holding
onto
gains
of
20
points
or
0.05%
and
the
Russell
2000
is
soaring
by
67.16
points
or
3.27%.

There
is
a
flow
of
funds
out
of
the
high
flying
tech
stocks
including:

• Meta
  Platforms
  -3.86%
• Amazon
  -2.70%
• Nvidia
  -4.84%
• Google
  -2.77%
• Apple
  -2.17%
• Microsoft
  -2.39%
• Tesla
  -6.40%