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U.S. Treasury auctions off $25 billion of 30 year bonds at a high yield of 4.813% | investingLive

  • High yield 4.813%
  • WI level at the time of the auction 4.792%
  • Tail 2.1 basis points six month average of -0.2 basis points
  • Bid to cover 2.27X versus six month average of 2.38X
  • Directs 23% versus six month average of 24.2%
  • Indirects 59.5% versus six month average of 61.9%
  • Dealers 17.5% versus six month average of 13.9%

Auction grade:D

The tail of +2.1 basis points vs six month average of -0.2 basis points is an indication of low demand. The bid to cover is also lower than the six-month average. Directs (a proxy for domestic demand) and indirects (a proxy for international demand) were also below the six-month averages. That raised the dealer take to a high 17.5% vs 13.9%.

All the major components were below the six-month averages. Not a good auction.

The three-year note auction on Tuesday was about average. The 10-year note auction yesterday was below average.

US stocks are not all that healthy with the NASDAQ index still holding onto a 28-point gain or 0.14%. The S&P index is down -0.26%.

Rick Santelli from CNBC gave it a grade of D as well.