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30Y Auction: Bid-to-Cover On The High Side

CANADA
  • Canada sold C$1.25B of the 2.75% Dec-2055 with an average yield of 3.218%.
  • The bid-to-cover of 2.500 was the second highest in the past eighteen months, up from the 2.364 in the April auction and compares with a five-auction average of 2.378.
  • The stronger demand helps the 30Y extend prior outperformance compared to the rest of the curve, with yields currently +9.2bps vs as much as +17.2bps for the 5Y after the sell-off on strong US data.

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