30 Year Auction Prices At 4.569%, Highest Bid To Cover In History On Flight To Safety

Tyler Durden's picture

Flight to safety into US Treasuries is back: today's $13 billion 30 Year bond priced at 4.569%, the first drop in issuance yield since September 2010, but the stunner was the Bid To Cover, which at 3.02 (compared to last month's 2.51) was the highest ever. The said, Primary Dealers did come in and buy more than half the auction or 53% to be precise with the knowledge they will promptly flip it back to the Fed in the next few months (we will find out when after the new POMO schedule is posted at 2 PM today). Indirects were 40.7%, higher than the LTM average of 37.7%, and Direct Bidders filled out the take down at 6.4%. Altogether a strong auction if one can make that statement in an environment when the PDs are well aware there is no auction purchasing risk at all courtesy of Brian Sack.