Stellar 30Y Auction Prices At Highest Yield Since July 2014
After two mediocre, tailing auctions including a subpar 10Y sale yesterday, the Treasury has redeemed itself with a stellar 30Y reopening.
Today's sale of 30 Year paper stopped at a high yield of 3.344%, the highest since July 2014, and stopping through the When Issued by 0.9% bps, the biggest difference to the WI since the 2.1bps in January.
The internals were similarly impressive, with the Bid to Cover of 2.419 higher than September's 2.337, higher than the 6 month average of 2.353 and the highest since January. And after foreign buyers demonstrated a lack of interest to both the 3 and 10Y auctions earlier this week, today they took down 64.4% of the 30Y auction, the highest since January and above both the September and average prints of 61.7% and 62.0%, respectively. Directs took down 12.8%, the highest since April leaving Dealers with 22.8% of the auction, the lowest since January.
Overall, a stellar auction reflecting not only the recent sharp selloff in rates, but also the sharp selloff in risk assets as Treasurys are once again seen as a flight to safety.