The reopening of the 30 year bond auction was mixed as the yield was about 1 bps higher than where the when issued was trading just prior at 4.303% (40 bps below the June auction) and the bid to cover at 2.36% was below the June reopening. But, going back to 2006 when the Treasury started the 30 year auctions again, it’s above the average of 2.22. The level of indirect bidders totaled 50.2% and is a touch above the June auction. Bottom line, the results are not enough to move the needle after yesterday’s solid 10 year note auction but it does cap a successful week in government fund raising and the Treasury gets to live another day in this regard with yields still well below the highs.
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