Once again, following a strong 10 Year auction, today's 30 Year reopening of CUSIP RJ9 was an absolute stunner, and with the When Issued trading at 2.875%, the high yield was a very much scorching 2.848%, stopping through nearly 3 bps through the WI, and the lowest 30 Year auction yield since November 2012. The reason for this impressive surge in last minute interest: a record low takedown by Dealers who got just 25.9% of the auction as they were pushed out by the other two bidding groups. Sure enough, there was an absolute scramble by Indirects (49.8%) and Directs (24.3%) both of which received, logically, a record high takedown for a 30 Year. And finally with the Bid to Cover soaring to 2.762, this was the highest since January of 2013.
Overall, while stocks continue to do their thing, tracking every move in the USDJPY, the smart money continues to rush into deflation protection, and buy every piece of "high quality collateral" they can get their hands on. Thanks GPIF.
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And 30Y is rallying off the back of this...
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And something curious: as Nanex pointsout, the liquidity during the auction (at 1:00PM Eastern) just hit an all time low.
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