Friday, 14 June 2024

U.S. Treasury to sell $22 billion of 30 year bonds at the top of the hour

by BD Banks

The US treasury will auction off $22 billion of 30 year bonds at the top of the hour. On Monday the coupon auctions for the week was started with the sale of three year note. That auction did not go well with a positive tail (rate above the WI level at the time of the auction) and light bid-to-cover support.

On Tuesday, the 10 year auction was the complete opposite with a negative tail and stronger than the average bid to cover data.

With the FOMC rate decision yesterday, the treasury of the day off. The 30-year auction will cast the deciding vote for the coupon auctions this week.

What are the 6-month averages for the major components going into the auction (a proxy for the success or failure of the auction)

  • Bid to cover: 2.41X
  • Tail: -0.7 basis point
  • DIrects (a measure of domestic demand): 19.8%
  • Indirects (a measure of international demand): 64.9%
  • Dealers (they take the balance): 15.4%

Yields across the curve are lower today. The 2-year yield is down 6.0 basis points while the 10 year is down -4.0 basis points and the 30 year is down -2.8 basis points.

US stocks are now in negative territory with the NASDAQ now trading down minus 11.42 points or -0.07%. The S&P index is down -0.17%. Both those indices closed at re record levels yesterday. The Dow is down -0.59% while the small-cap growth in 2000 is down -1.35%.

This article was written by Greg Michalowski at