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30Y Review: First Trade Through Since June Sparks A Rally

US TSYS/SUPPLY
  • Treasuries rally swiftly with a rare return to trading through for the 30Y. 30s have rallied 4bps since shortly before the results.
  • The $21bn 30Y re-open sees a high yield of 4.344% vs WI yield of 4.347%, trading through by 0.3bp for its first trade through since June.
  • It follows an average 2.6bp tail over the past five auctions courtesy of a historic 5.2bp last month. Decent internals:
  • Bid-to-cover 2.43x (5-auction 2.38x, latest 2.24x) – highest since Sep.
  • Dealers take 14.23% (5-auction av 16.41%, latest 24.73%) – lowest since Aug.
  • Indirect 68.47% (5-auction av 65.31%, latest 60.11%) – highest since Jul.
  • Direct 17.30% (5-auction av 18.28%, latest 15.16%) – highest since Sep.

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