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Review 30Y Bond Auction: Weak

US TSYS/SUPPLY

Treasury futures remain weak (USU4 121-24, -22) after the weak $25B 30Y auction (912810UC0) tailed 2.5bp (largest tail since last November's 5.2bp): 4.314% high yield vs. 4.285% WI; 2.31x bid-to-cover vs. 2.30x in the prior month.

  • Indirect take-up 65.32% vs. 60.76% prior; direct bidder take-up 15.5% vs. 23.36% prior; primary dealer take-up highest since November at 19.18% vs. 15.88%.
  • The next 30Y auction (re-open) is tentatively scheduled for September 8.

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