US 30-Year Bond Auction Yields 4.769%, Bid-Cover Ratio 2.24, $24B Auction Causes 19bps Spike in Yields

The United States 30-Year Bond Auction resulted in a disappointing yield of 4.769%, lower than the previous 4.837%. The Bid-Cover Ratio decreased to 2.24 from 2.35, with a decrease in both Direct and Indirect Accepted percentages. The auction of $24 billion worth of 30-year bonds caused a spike of 19 basis points in yields, indicating illiquidity in the long end. The auction was described as one of the worst ever seen, leading to concerns about the market's reaction. Subsequently, 30-year yields plummeted below the 'failed auction' levels, emphasizing the importance of post-auction price action.