Dismal $16 Billion 30 Year Auction Closes At 4.720%, Record Direct Take Down Of 24.07%

Horrible 30 year bond auction in which not only did the bid to cover plunge from prior auctions, not only was the tail very big, but the Direct take down (24%) was almost as high as the Indirect (28.5%). Something is very wrong with the demand dynamics of the long-end, as we have long speculated.

  • Yields 4.720% vs. Exp. 4.687%
  • Bid To Cover 2.36 vs. Avg. 2.54 (Prev. 2.68)
  • Indirects 28.5% vs. Avg. 41.07% (Prev. 40.77%)
  • Indirect Bid To Cover: 1.44
  • Allotted at high 61.57%
  • Direct Bidder Take Down: 24.07%
  • Indirect Bidder Take Down: 28.53% - foreign buyers are fleeing, with the average of the last four auctions coming at 39.9%.

Algos care not that we just had as close to a failed auction as possible.