Strong 30 Year Auction Prices At Lowest Yield Since June

Tyler Durden's picture

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: