The US treasury auctioned off $25 billion of 30 year bonds at high yield of 4.635%

The US treasury auctioned off $25 billion of 30-year bonds. The results vs the 6-month averages shows.

• High Yield: 4.635

  • Previous: 4.671%
  • Six-auction average: 4.451%
• WI level at the time of the auction: 4.642%

• Tail: -0.7 bps

  • Previous: 1.0 bps
  • Six-auction average: 0.3 bps

• Bid-to-Cover: 2.41X

  • Previous: 2.37x
  • Six-auction average: 2.38x

• Dealers: 15.36%

  • Previous: 17.3%
  • Six-auction average: 16.6%

• Directs: 19.78%

  • Previous: 18.3%
  • Six-auction average: 16.6%

• Indirects: 64.86%

  • Previous: 64.4%
  • Six-auction average: 66.8%

OVERALL GRADE: B

Summary: There was a negative tail vs 0.3BP average. The bid-to-cover was above the average indicative of better than average demand. THe domestic buyers was stronger than the average, but the international demand was less than average.

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