If yesterday's 10 Year auction priced stronger than expected during yesterday's NYSE-trading vacuum, today's 30 Year was the mirror image, with the Treasury selling $13 billion in 30 Year paper far weaker than the When Issued market had expected, resulting in a 3.084% high yield, a tail of 1.6 bps to the When Issued.
The internals were likewise on the weak side, with the Bid To Cover sliding to 2.231 from June's 2.535, as a result of a drop in both Direct and Indirect bidder takedown, from 14.4% to 8.1%, and from 52.0% to 51.1% respectively, leaving Dealers with 40.8% of the auction, the highest since April.
[8]
End result:a rather unpleasant jerk wider across the curve, with the biggest pain on the long end, which was quite unexpected in light of the big weakness in initial claims earlier today and the ongoing uncertainty surrounding both China and Greece, not to mention the ongoing deflationary commodity rout.
[9]
