After a mediocre 3Y auction and a stellar 10Y auction, today the Treasury concluded the week's coupon issuance with the sale of $16 billion in reopened 29-year 11-month bonds. The high yield of 3.014%, while coming at the lowest since July 2018, was a surprisingly big tail to the 3.006% When Issued, suggesting some indigestion during the auction process.

Yet while the high yield left a little to be desired, the internals were solid with the Bid to Cover printing at 2.254, fractionally below February's 2.27% which also happened to be the 6 auction average. Meanwhile, following some growing concern about Indirect bidder, i.e. foreign buyers, stepping back, today's takedown was solid, with 57.8% going to foreign official institutions, above last month's 56.4%, if below the recent auction average of 60.9%. And with Directs fading modestly, taking down 14.1% after last month's 17.0%, Dealers ended up with 28.1% of the auction, above both Feb's 26.6% and the recent auction average.

In summary, a solid auction with inline internals, despite some weakness headed into the 1 pm auction deadline. As a result, there was virtually no reaction in the secondary bond market.

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