Solid Demand For 20Y Paper In Week’s Only Coupon Auction

Solid Demand For 20Y Paper In Week’s Only Coupon Auction

In the week’s only coupon auction, moments ago the Treasury sold $16bn in 20Y paper in a solid auction.

The high yield of 4.635% was down from last month’s 4.818% and also stopped through the When Issued 4.637% by 0.2bps, the third consecutive non-tailing auction in a row.

The bid to cover was on the light side, dropping to 2.51 from 2.82 in April and below the six-auction average of 2.61.

The internals were solid with Indirects awarded 70.8%, above the recent average of 68.3% but the lowest since February (April was 74.7%). And with Directs taking down 19.2%, the most since February, Dealers were left holding 10.1%, also the most since February.

Overall this was a solid if hardly spectacular auction, and predictably there was virtually no market reaction, with the 10Y trading unchanged at 4.42% on the results.

Tyler Durden
Wed, 05/22/2024 – 13:16

via ZeroHedge News https://ift.tt/ZwgL20i Tyler Durden

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