Mediocre 30Y Auction Prices At Highest Yield Since August 2000

After a subpar 3Y auction on Tuesday, and a stellar 10Y yesterday, moments ago the Treasury concluded the week's final coupon sale when it sold $22BN in 30Y paper in an average auction. 

The 30Y sale priced just after 1pm, stopping out at a 5.618% high yield, up sharply from 5.308% in September, and the highest since August 2000!

The high yield stopped through the When Issued by 0.1bps: good, but not as good as last month's amazing 2.7bps stop through.

The bid to cover was 2.542, a drop from last month's 2.612 but above the recent average of 2.411.

The internals were also average: indirects dropped from last month's near-record 79.5% to 72.3%, but that was also above the recent average of 69.1%. Directs took down 20.9%, up from 18.3% and in line with the recent average of 20.6%. And while not nearly as low as yesterday's record low, the Dealers award was 6.8%, one of the lowest on record but a rebound from September's record low 2.2%.

Overall this was a good auction, but would have been much better if the market had some time to digest the news that OpenAI's revenue was, in fact, much lower than it had previously disclosed (imagine that) which has helped send yields sharply lower as the Treasury market suddenly realizes it may not have to compete with the AI bubble for paper much longer...