US Treasury auctions off $58 billion of 30 year bonds at a high yield of 4.015%

The US treasury auctioned off $58 billion of the 30 year bonds.

High yield: 4.015%

• Previous 4.314%
• six-month average 4.460%

WI level at the time of the auction: 4.001%

Tail: 1.4 bps

• Previous: 3.1 basis points
• 6-month average: 0.3 basis points

Bid to Cover: 2.38X

• Previous: 2.31X
• 6-month average: 2.39X

Dealers: 15.7%

• Previous: 19.2%
• 6-month average: 15.9%

Directs: 15.7%

• Previous: 15.5%
• 6-month average: 18.6%

Indirects: 68.68%

• Previous: 65.3%
• 6-month average: 65.5%

AUCTION GRADE: D+

The 30 year bond auction was not as successful as the three and 10 year coupon auctions earlier this week.

• There was a positive tail of 1.4 basis points. The only good about that is last month it was a 3.1 basis points
• The bid to cover was on par with the 6 month average
• The Dealers were saddled with the average as well.
• Domestic demand was less than the average
• International demand was above the average providing some positive.

The grade is below average but last month was much worse.

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