Yesterday’s 10 Year auction may have been surprisingly weak, perhaps concerned about what the subsequent FOMC minutes would reveal (as it turned out the minutes couldn’t have been more dovish – just as everyone knew would be the case – and sent 10Y yields sliding) but today’s 30 Year reopening (Cusip: RE0) auction was quite brisk, with the high yield of 2.535% stopping through the When Issued of 2.537% by 0.2 bps. And for those who have been living under a rock and unfamiliar with the epic flattening in the yield curve, today’s 30 Year was the tightest pricing since the 3.36% yield last seen in the auction from June 2013.
Other internals: the Bid To Cover rose to 2.52, the highest since January, while the allotment was roughly in line as expected with Direct Bidders taking down 17.9%, Indirects 43.3%, and leaving 38.8% for the Dealers who can’t wait to flip this CUSIP to the Fed as the end of QE rapidly approaches (at least until the S&P “crashed” by 10%).
The full breakdown:
via Zero Hedge http://ift.tt/1qlgdfk Tyler Durden