If yesterday's tailing 10 Year auction left people concerned that today's final for the week 30 Year bond issuance would be weak, then the results put that promptly to rest, after the $13 billion reopening of Cusip RH3 priced at 3.24%, pricing 2.3 bps through the 3.263% When Issued. Furthermore, the Bid to Cover if 2.67 was above the August 2.60, well above the TTM average of 2.40, and the second highest of 2014, second only to June's 2.69. The internals were very solid as well, with Directs taking down 21.8%, above the 16.8% average, Indirects holding 45.5%, in line with last month and above the TTM average of 43.4%, and Dealers left with 32.8% of the paper which they can quickly flip back to the Fed for the next 6 or so weeks until QE ends (before it has to resume once again of course).
Altogether a very strong auction, as can be seen by the reaction across the curve, and justifying the Fed's worst fears that instead of steepening the yield curve, all the Fed's intervention is doing is sending even more recessionary signals as the curve goes every flatter.
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