Uneventful 30 Year Auction Breaks 3 Month Trend Of Rising Yields

The week's final bond auction has closed in a manner comparable to the prior two: uneventful. Minutes ago the Treasury sold $13 billion in 30 year bonds at a yield of 3.230%, down from the 3.381% in March (the highest since the August US downgrade) precisely where the When Issued had been trading, and with a Bid To Cover of 2.76 just modestly better than the prior March auction's 2.70 and the 12 TTM average of 2.67. The internals were also quite boring with Direct taking down 13.4%, Indirects as usual stuck with just under a third, or 30.7%, compared to a 32.9% average, and Dealers taking down 55.9% of the total, an amount which will be promptly rehypothecated in various repo channels, thereby allowing the banks to convert cash into cash, but in the process fund more than half of yet another "successful" auction - just like always. This week's final auction brings total US debt to $16.66 trillion give or take.

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