Yesterday's 10 Year auction was, despite the concurrent pricing of the world's biggest bond deal in the face of AB InBev's $45 billion issue, a blockbuster, with demand off the charts in every possible way. However, today's just concluded sale of $13 billion in 30 Year paper left quite bit to be desired.

On the surface, the bond was strong, stopping through the 2.14% when Issued, with a 2.905% High Yield, 62.3% allotted at high. However the internals were anything but good, with the Bid to Cover sliding from last month's 2.42 to 2.29, below the TTM average of 2.37 and the lowest since August. The takedown was likely less than stellar, as Directs held on to 1.08% of the final distribution, while Dealers had to step up their takedown to 32.6% the most since August for the simple reason that Indirect demand slid from 63.9% to just 56.5% as foreign central banks ended up buying the least since October.

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Judging by the reaction across the curve, the market was far more focused on the drop in the Bid to cover and the Indirects than the better than expected yield, and sold off.

And with that, this week's final auction has closed if not with a bang, then somewhat whimpery, and potentially stocking concerns about foreign reserve liquidation and demands for US paper especially on the long end.