US sells USD USD 23bln of 30yr bonds at 2.340%, covered 2.30x, tails by 1.1bps
- High Yield: 2.340% (prev. 2.075%, six-auction average 1.985%), WI: 2.329%
- Tail: 1.1bps (prev. 0.3bps, six-auction avg. 1.1bps)
- Bid-to-Cover: 2.30x (prev. 2.35x, six-auction avg. 2.31x)
- Dealers: 14.3% (prev. 17.9%, six-auction avg. 17.9%)
- Direct: 17.75% (prev. 17.1%, six-auction avg. 17.8%)
- Indirect: 67.95% (prev. 65.0%, six-auction avg. 64.3%)
Analysis details (18:11)
- An average 30yr auction overall with the 1.1bps tail and 2.30x B/C ratio in line with the six-auction averages, and given the CPI reading and recent Fed speak, that has probably taken off some of the shine of the significantly cheapened (M/M) new issue as volatility rises again. Nonetheless, the 2.340% stop rate marks the highest since May 2021. The breakdown was more positive, with Dealers taking 14.3%, below average 17.9%, while Indirects yet again stood in to take an above-average share (67.95% vs avg. 64.3%).
10 Feb 2022 - 18:02- Fixed IncomeData- Source: Newswires
Subscribe Now to Newsquawk
Click here for a 1 week free trial
Newsquawk provides audio news and commentary for over 15,000professional traders and brokers worldwide. Services include:
- Real-time audio coverage from 0630 to 2200 London time plus Asia-Pac 2200 to 1000 London time
- Teams of analysts covering equities, fixed income, FX, energy, and metals markets
- Real-time scrolling news service with instant analysis
- Daily and weekly pre-market research and calendars
- Video updates covering near-term key risk events & primary trading themes
- One-to-one chat with our expert analysts