US Treasury auctioned off $21 billion of 30 year bonds at a high yield of 4.344%

<ul><li>High-yield 4.344%</li><li>WI level at the time of auction 4.347%</li><li>Tail -0.3 basis points versus 6-month average of 2.1 basis points</li><li>Bid to cover 2.43X vs 6-month average of 2.40X</li><li>Dealers 14.23% vs 6-month average of 15.2%</li><li>Directs 17.3% vs 6-month average of 18.3%</li><li>Indirects 68.47% vs. 6-month average of 66.6%</li></ul><p>Auction grade: A-</p><p>The 30-year auction was great especially relative to last month's auction which saw a 5.3 basis point tail. </p><p>This auction had a tail of -0.3 basis points which was still much better than the 2.1 basis point average. The bid to cover was higher than the 6-month average. Dealers which was saddled with nearly 25% of the auction last month, only received 14.23% this month – below the 6-month average. Domestic buyers was a little light compared to the average, but international demand was stronger than the average.</p><p>Overall it is a solid A- and certainly much better than last month even though rates were 32-33 basis points higher (at 4.769%)</p>

This article was written by Greg Michalowski at www.forexlive.com.