Treasury Concludes Weekly Auctions With Strong Demand For 30Y Bonds

And so this week’s accelerated Treasury auctions are over, with a $14 billion reopening of 29-year-11-month bonds pricing moments ago at a high yield of 3.100%, just barely tailing to the 3.099% When Issued – the first tail since February – but below last month’s 3.13% as the curve continues to flatten.

Internals were stronger with Bid to Cover of 2.380 identical to last month, but below the 6 month average of 2.44. More notably, Indirects took down 62.2%, just under May’s 62.7% which is also the 6 month average. And with Directs awarded 10.33%, or right on top fo the 6MMA, Dealers were left holding 27.5% of this week’s final auction ahead of tomorrow’s FOMC.

Overall, a quick and relatively painless sale of some $200BN in bill and coupon securities in just 48 hours, to a market which despite rising rates, continues to be quite receptive to all the issuance the US government can throw at it.

Treasury Concludes Weekly Auctions With Strong Demand For 30Y Bonds
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