US sells USD 22bln of 30-year bonds; tails 0.5bps
- High Yield: 4.876% (prev. 4.871%, six-auction avg. 4.745%); WI: 4.871%
- Tail: 0.5bps (prev. -0.7bps, six-auction avg. -0.3bps)
- Bid-to-Cover: 2.39x (prev. 2.45x, six-auction avg. 2.42x)
- Dealers: 11.6% (prev. 9.4%, six-auction avg. 9.9%)
- Directs: 24.2% (prev. 27.2%, six-auction avg. 24.0%)
- Indirects: 64.1% (prev. 63.4%, six-auction avg. 66.0%)
Context
The recent auction of 30-year bonds saw a slight tail of 0.5bps, indicating weaker demand than the prior auction's bid-to-cover ratio of 2.39x, which was a dip from the previous average. This suggests a cautious outlook among investors, reflected in the higher yield of 4.876% compared to earlier levels, which could influence upcoming rate expectations and the broader fixed income market's sentiment. The increased dealer participation may alleviate some concern, but overall, this auction signals a need to watch for potential shifts in investor appetite for long-duration debt given recent volatility.
Trade the TapeGet this analysis live, the moment it breaksNewsquawk's real-time dashboard delivers market-moving headlines and instant context to your desk before the rest of the market reacts.
Open Dashboard#UNITED STATES#USD#EUR#JAPAN#JPY#UNITED KINGDOM#GBP#EUROPE#IMPORTANT#FOREX#FIXED INCOME#METALS#EU SESSION#US SESSION#YIELD#METALS & MINING#DXY