U.S. Treasury auctions off $22 billion of 30 year bonds at a high yield of 5.058%
The U.S. Treasury auctioned off $22 billion of 30 year bonds to complete the coupon auctions for the week.
Below are the details from the auction results.
- High yield 5.058%
- WI level at the time of the auction 5.061%
- Tail -0.3 basis points vs average of -0.2 basis points
- Bid to cover 2.44X versus average of 2.43X
- Directs (domestic buyers) 12.24% versus average of 24.0%
- Indirects (international buyers) 77.74% versus average of 65.1%
- Dealers 10.05% versus average of 10.9%
AUCTION GRADE: B-
Once again, the international buyers led the demand by taking nearly 78% of the auction – well above the six auction average. The domestic buyers were lite, only taking half of what they normally take.
Rick Santelli on CNBC gave it an A-. I only give it a B- as the numbers for the components were largely near the averages sans the Direct and Indirect mix which offset each other. Bid to cover was near the average, The Tail was near the average. The Dealers take was near the average. B- or C+ is my grade.
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