The US Treasury will auction $22.0 billion worth of 30-year bonds at full hour. The six-month averages of the main components show:
- Bid to cover 2.38X
- Tail 0.8 basis points
- Direct (a measure of domestic demand) 16.4%.
- Indirect (a measure of international demand) 66.9%.
- Dealers 16.7%
The high yield at the last auction last month was 4.331% with a tail of -2.1 basis points and a cover bid of 2.47X.
The current 30-year yield is trading at 4.661%.
Yesterday’s auctions for 10 years did not meet strong demand. The tail was 3.1 basis points with below-average coverage offering. Domestic and international demand was also lower than the half-year averages.
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