Treasury Sells Tailing 30Y Bonds At Lowest Yield Since January

treasury sells tailing y bonds at lowest yield since january

Concluding this week’s US bond sales, moments ago the US Treasury sold $14 billion in a 30 Year reopening of Cusip SC3 at a high yield of 2.958%, which while tailing the When Issued 2.954 by 0.4bps, was the first sub-3% auction since January.

The internals were in line with recent sales, with the bid to cover coming at 2.337, below June’s 2.380 and below the 6 month auction average of 2.425. In fact, it was the lowest BTC since February’s 2.257. The takedown was in line with expectations, as Indirects took down 61.9%, also modestly below both June’s (62.2%) and the 6MMa (62.7%), while Directs took down an identical amount as last month, or 10.3%. This left Dealers holding 27.8%, in line with June’s 27.5%, and slightly above the average of 26.7%.

Overall, an ok auction, if not nearly as strong as yesterday’s 10Y which did come with a sizable concession, but certainly not ugly. If anything, just another mediocre sale of long-dated paper which is pricing at a yield that is fast approaching the Fed funds rate as the entire curve continues to flatten.

Treasury Sells Tailing 30Y Bonds At Lowest Yield Since January
Read on ZH

Author: HEDGE

Hedge Accordingly was founded ahead of the global financial crisis in January of 2008, with the goal of providing our readers our unique take on The Latest News on Wall Street, Stocks, #Politics and Business news. Hedge Accordingly produces both original, and aggregated #Wallst news content from top publishers around the world. We curate aggregated content covering the latest news on politics, stocks, wall street, and the tech industry. We also provide free stock charting, quotes and a bitcoin, forex and currency exchange. Learn More About