US treasury auctions off $22 billion of 30 year bonds at a high yield of 4.389%

October 10, 2024 at 06:03PM

High yield: 4.389%

WI level at the time of the auction: 4.404%

Tail -1.5 basis points basis points versus six-month average job 0.9 basis points

Bid to Cover 2.50X versus six-month average of 2 38X

Directs (domestic buyers) 7.37% vs six-month average of 18.4%

Indirect (international buyers): 80.47% versus six-month average of 65.4%

Dealers: 12.16% versus six-month average job 16.2%

Auction Grade : A-

Highlights: For the second auction in a row, the domestic buyers were light but th international buyers were very strong. The bid to cover was higher than the six-month average. There was a negative tail indicative of strong demand as well. The dealers were saddled with less than average.

The weirdness comes from the domestic demand which only accounted for 7.37% of the buyers. That is well below the 18.4% six-month average. It was more than made up by the international demand that 80.47% well above the 65.4% average

This article was written by Greg Michalowski at www.forexlive.com.