Strong Demand For 30Y Paper Shows No Shortage Of Buyers Amid Surge In Issuance

Following yesterday's strong 3Y and 10Y auction in a day of supply deluge, moments ago the Treasury sold $13 Billion in 30Y paper in the latest strong auction, which stopped at a high yield of 3.109%, stopping through the when issued 3.114% by 0.5bps. The Bid to Cover also showed a marked improvement, rising from 2.26 to 2.38, if just below the 6 month auction average.

Once again, refuting the incorrect narrative that foreigners are shying away from Treasurys (just look at the record amount held in custody at the Fed), Indirects took down 57.9%, modestly below last month's 61.2%, and in line with the 6 month average of 63%. Meanwhile, the Direct award jumped from 8.1% to 14.8%, the highest since October 2015, leaving Dealers holding 27.3%, below last month's 30.8%.

In summary, another strong auction perhaps boosted by today's growing risk sentiment and flight to safety.



Jerry020203 Ink Pusher Tue, 03/13/2018 - 19:56 Permalink

Find the auction price of a silver dollar coined in the 20s. Or, some Franklin half dollars.   It generally nails it every time.  The coins aren't rare.  Just hoarded.  Found 10 common peace dollars (in decent shape, but not super rare).  Averaged today's auction price at $19.20.

The market agrees with the two-cent valuation.

In reply to by Ink Pusher

Ink Pusher Tue, 03/13/2018 - 13:20 Permalink

LOL , I am not aware of any 'humans'  buying this 30Y bullshit issuance.

The AI has already taken over and the Bankster's Algos are on a buying spree because it simply "too good to be true".

Meanwhile; back in reality ... the 30Y is and should be called out for exactly what it is ; THE 30Y WAR BOND.


InnVestuhrr Tue, 03/13/2018 - 13:30 Permalink

so, according to the doom porn carnival barkers, the rates on US treasuries were supposed to sky-rocket, and shiny shit with them ... open your eyes and behold reality

Mementoil InnVestuhrr Tue, 03/13/2018 - 13:35 Permalink

I'm sorry, but reality doesn't make sense to me anymore.
The Fed claims to be out of the QE business. As a matter of fact they told you that they are going to SELL BONDS into the market, what is assured to make bond prices drop. Trump administration is promising to spend spend spend, which means bigger deficits and the treasury selling EVEN MORE bonds.
So who in his right mind is buying an asset which is certain to depreciate?

In reply to by InnVestuhrr

Bemused Observer Tue, 03/13/2018 - 13:32 Permalink

Well good, looks like no one else is worried about our debt, so why should I?

I don't care, really. It makes no difference whatsoever in my world. 

I'm not worried about paying it back either.

Snaffew Tue, 03/13/2018 - 13:34 Permalink

the games must go soon as one of the global cb "partners" stops buying US treasuries, aka "quits their job"...then the whole house of cards falls apart.  i'm surprised all these Douchebags don't just print another $20 trillion since they'll keep buying each others debt in this game of paper chase.

Snaffew Tue, 03/13/2018 - 13:37 Permalink

yup...if the US can keep printing debt and not paying it can consumers.  I'm buying one of those fat ass RV's, a boat and a motorcycle and I'll tow that shit all across country and maybe down to Mexico before I even have to make the first payment...which I won't.  The gov't showed me how.

buzzsaw99 Tue, 03/13/2018 - 13:56 Permalink

Once again, refuting the incorrect narrative that foreigners are shying away from Treasurys...

eloquent as usual.  i would have written something along the lines of:  tired of getting gang fucked by nirp abroad, ass sore buyers flocked to usa treasurys.  or some such shit.  lolz

abgary1 Tue, 03/13/2018 - 14:06 Permalink

After 9 years of the Fed buying up everything there probably is some pent up demand.

Also the US debt looks attractive compared to the EU's negative interest rates.

taketheredpill Tue, 03/13/2018 - 14:32 Permalink

Back in November (JPM) Treasury Bond Investor Sentiment hit depressed levels last seen in 2005, just before US30s began their long march from 5.00% to 2.15%.

Also a record speculative short Treasury futures position, up 4X since January.

And all everybody talked about for past year is "the bond bull market is over".  Also, lots of talk about inflation coming, although this seems to have died down recently.


So...the big surprise in Bond markets might be......?


Oh yeah, don't forget High Yield, basically trading sideways despite Equity volatility.  Big Fat Juicy 350 basis point spread!  Enjoy!!


wanderer9641 Tue, 03/13/2018 - 16:40 Permalink

Who would love to see the second set of books of the centyral banks?  Crooked is being polite.  No one in their right mind would grab a bond when it is all about to implode.