US treasury auctions off $22 billion of 30-year bind at a high-yield of 4.403%

• High yield 4.403%
• WI level at the time of the auction: 4.418%
• Bid to cover: 2.49X vs 6-month average of 2.41X
• Tail: -1.5% bps vs 6-month average of -0.7 basis point
• DIrects (a measure of domestic demand): 17.8% vs 6-month average of 19.8%
• Indirects (a measure of international demand): 68.5% vs 6-month average of 64.9%
• Dealers (they take the balance): 13.7.x% vs 6-month average of 15.4%

Auction Grade:A-

Once again the international demand was strong for the 30-year bond auction. The indirect bidders took 68.5% of the auction well above the 64.9% average. The cover was longer then the average, and the auction tail of -1.5 basis points was also an indication of solid demand. The only disappointment was the domestic buyers were lighter than average as international buyers outbid them.

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