Anyone expecting fireworks in today's 30 Year bond auction [6], and hoping a repeat of yesterday's WTF 10 Year bond auction which saw the High Yield 6 bps inside the When Issued, will be disappointed. Yes, the auction priced at a record low yield of 2.58% (that said, only 40.64% was allotted at the high with a 2.436% low yield), and yes, this was again well through the When Issued 2.594%, but that's about as far as it goes: the Bid to Cover was 2.70, in line with the TTM average 2.64, Primary Dealers were stuck with 43.1% of the auction, below the average take down of just over half, while the key Directs took down 20.1% of the issue, which again was high, but nowhere near yesterday's soaring Direct activity, which led many to speculate that there could either be a collateral squeeze, or a rapid reallocation from the ECB's ZIRP cash into US paper (coupled with even more EURUSD repatriation as BAC has also figured out now [7], only one year after ZH). Bottom line a snooze, and next we look forward to two weeks from today, when the next trio of 2, 5, 7 year auctions is on deck, which just may send total US debt to $16 trillion.
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