The US treasury auctions off $25B of 30 year bonds at a high yield of 4.608%

• High Yield 4.608%
• WI level at the time of the auction: 4.63%
• Tail: -2.2 bps vs 6-month average 0.5 bps
• Bid to cover: 2.64X vs 6 month average of 2.4X
• Directs (a measure of domestic demand):27.1% vs. 6-month average of 16.58%
• Indirects (a measure of international demand): 62.7% vs 6-month average of 68.10%
• Dealers: 10.2% vs 5-month average of 15.32%

Auction Grade: A-

The 30-year coupon auction came in at a high yield of 4.608% which was -2.2 bps from the WI level at the time of the auction.

The domestc bid was huge with 27.1% of the auction going to that sector. That is well above the 16.58% average over the last 6-months. The demand domesticilly crowded out the buyers from overseas which were lower at 62.7% vs 68.10% average. Bid to cover was above the average.

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