Select Page

Bond Yields Tumble After Spectacular 30Y Auction

Bond Yields Tumble After Spectacular 30Y Auction

Bond Yields Tumble After Spectacular 30Y Auction

One day after we got a two-fer of a solid 3Y and a mediocre 10Y auction, some rates traders were afraid that between today’s (hot) CPI print and the flood of new issuance, today’s 30Y auction would be ugly. It was anything but.

Moments ago the Treasury announced that it auctioned off the last coupon for the week when it sold $24 BN in ultra long dated paper in the form of a 29-year 10-month reopening. And boy was this in demand: the high yield of 2.320% was fractionally above the 2.295% high yield in March, but more notably, stopped through by a whopping 1.8bps through the When Issued 2.338%. This was the biggest stop through since December and a dramatic reversal from the last two tailing auctions.

The Bid to Cover of 2.446 was also a solid improvement from the 2.284 recorded last month and was above the six-auction average of 2.332.

The internal were just as impressive with Indirects taking down 61.0%, the highest since January if slightly below the 63.2% in March. And with Directs taking down 21.9%, the most since December 2014, Dealers were left holding 17.1% the lowest since January.

And since today’s 30Y auction – arguably the best of 2021 – was a stark reversal to the ugly “whisper” scenario, yields tumbled, with the 10Y sliding over 2bps on the auction and the 30Y tumbling and reversing all of the recent pre-CPI jitters.

 

Tyler Durden
Tue, 04/13/2021 – 13:14


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Welcome

Bringing together a variety of news and information from some of today’s most important libertarian thought leaders. All feeds are checked and refreshed every hour and pages auto-refresh every 15 minutes. External images are deleted after 30 days.

Time since last refresh: 0 second

Publish Your Own Article

Follow The Libertarian Hub

 

Support Our Work

Support the Libertarian Hub by tipping with Bitcoin!

Weekly Newsletter

Newsletter Signup

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!

Weekly Newsletter SignupTop 5 Stories of the Week

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!