After two consecutive mediocre auctions, when the sales of 3Y and 10Y debt earlier this week tailed modestly, moments ago the Treasury concluded this week's coupon issuance (which comes alongside a biblical flood of Bill and CMB sales), when it sold $17BN in 30Y paper (technically a 29-Year, 10-Month reopening) in what was a very strong auction.
The high yield of 1.325% was just 0.5bps above last month's record low yield of 1.32% and also stopped by 0.5bps through the When Issued.
The bid to cover was almost unchanged from last month's 2.358, dripping fractionally to 2.352%, which was also just below the 6 auction average of 2.377%.
The internal was also a bit softer than last months, as Indirects took down 66.4%, down from 69.5% which however was above the 62.5% recent average, and with Directs taking down 11%, more than the 8.9% in March, Dealers were left with 22.6%, a slightly higher than average number, and one which Dealers will promptly make sure eases as they sell the long end back to the Fed.
Overall, this was a solid stopping through auction and one which underpinned the long-end of the curve.
(Click on image to enlarge)
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