US sells USD 22bln of 30-year bonds; Stop through 0.8bps

The US sale of $22 billion in 30-year bonds attracting a strong bid-to-cover ratio of 2.42x and a tail of -0.8bps indicates solid demand, outperforming recent auctions.

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  • High Yield: 4.825% (prev. 4.773%, six-auction avg. 4.759%): WI 4.833%
  • Tail: -0.8bps (prev. -0.1bps, six-auction avg. 0.5bps)
  • Bid-to-Cover: 2.42x (prev. 2.36x, six-auction avg. 2.34x)
  • Dealers: 11.9%  (prev. 11.2%, six-auction avg. 12.4%)
  • Directs: 21.3% (prev. 23.5%, six-auction avg. 23.9%)
  • Indirects: 66.77% (prev. 65.4%, six-auction avg. 63.7%)
Context

This could point to a healthier appetite for longer-duration bonds, which may influence the yield curve and provide insight into market expectations for interest rates. With the high yield slightly above previous levels, traders should consider implications for both fixed income and broader market sentiment, particularly around Federal Reserve policy.

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