The week's final coupon auction is now over, and after a very strong 3Y and 10Y auction, the just concluded 30Y reopening closed the week's action with a bang: pricing at a high yield of 2.607%, the Treasury sold $16 billion in ultra-long-dated paper in the form of a 29-year, 11-month reopening which priced at the lowest yield since October 2016, and which stopped through the When Issued 2.611% by 0.4bps.

The internals were just as impressive, with the bid to cover rebounding from May's disappointing 2.200 to 2.316, the highest since October 2018, and well above the 2.256 auction average. And with Directs taking down 15.1%, the highest since February, dealers were left with just 24.1%, the lowest since December 2018.

Overall a very strong auction, confirming that demand for US paper is still there - i.e., no Treasury boycotts by China - and one which surprised with excess demand even through the entire curve was sinking slowly, and the 10Y was trading at just 2.1014%, the lowest it has hit since last Friday's NFP shock.

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