The US Treasury conducted a $16 billion auction for 20-year bonds with a high yield rate of 4.595%, higher than the 4.423% yield in January. The bid/cover ratio was 2.390, direct accepted at 19.7%, and indirect accepted at 59.1%. The when-issued yield was 4.562%. The auction results were considered poor as the yield exceeded the bidding deadline yield by over three basis points.
ITALIAN 2 YR 3.2% BTP AUCTION BID-TO-COVER 1.37 AVERAGE YIELD 3.41% SELLS β¬4 BLN
ITALIAN 2 YR BTP YIELD ACTUAL 3.41% (FORECAST -, PREVIOUS 3.21%)
π΄ ITALIAN 2 YR BID-TO-COVER ACTUAL 1.37 (FORECAST -, PREVIOUS 1.45) $MACRO
π΄ ITALIAN 2 YR BTP YIELD ACTUAL 3.2% (FORECAST -, PREVIOUS 3.21%) $MACRO
US 30-YEAR TIPS AUCTION BID-TO-COVER RATIO 2.43 HIGH YIELD 2.2% US SELLS $9 BLN AWARDS 63.66% OF BIDS AT HIGH PRIMARY DEALERS TAKE 8.98% DIRECT 17.61% INDIRECT 73.41%
US 30-Year TIPS Sale: - High Yield Rate: 2.200% (prev 1.970%) - Bid-Cover Ratio: 2.430 (prev 2.420) - Direct Accepted: 17.6% (prev 19.6%) - Indirect Accepted: 73.4% (prev 76.2%) - WI: 2.175%
π΄ US 30-YEAR TIPS BID-TO-COVER ACTUAL 2.430 (FORECAST -, PREVIOUS 2.420) $MACRO
#TreasuriesToday: Yields higher by 1bp-2bp with stock futures giddy. 10Y 4.33%, YTD high. Next week's auction sizes at 11am: $63b 2Y, $64b 5Y (both peaks) & $42b 7Y projected. $9b 30Y TIPS new issue at 1pm. WI yield, ~1bp rich to 2.16% spot, exceeds 30Y TIPS stops since 2011.
WHAT WE WERE WATCHING FOR Today the Treasury sold 20Y paper with disastrous metrics, sending yields sharply higher across the board. The high yield of 4.595% was well above last month's 4.423% and it tailed the When Issued 4.562% by 3.30 bps, the biggest tail on record for a 20Yβ¦
Treasury sale of $16 billion #20Year Bonds was poor. The yield at 4.595% is more than three basis points higher than the yield at the bidding deadline. https://t.co/ZXUuqyGKhk
20Y high yield 4.595%, WI 4.562%, tail 3.3bps, biggest tail on record for the 20Y. Yields surging to HOD
US 20-Year Bond Sale: - High Yield Rate: 4.595% (prev 4.423%) - Bid/Cover Ratio: 2.390 (prev 2.530) - Direct Accepted: 19.7% (prev 20.5%) - Indirect Accepted: 59.1% (prev 62.2%) - WI: 4.562%
β TREASURY WI 20Y YIELD 4.562% BEFORE $16 BILLION AUCTION β TWENTY-YEAR BONDS DRAW 4.595%; ALLOTTED AT HIGH 41.13%
πΊπΈ United States 20-Year Bond Auction $USD Actual: 4.595% Previous: 4.423%
Treasury plans to sell $16 billion 20 Year Bonds today; the auction results will be announced just after noon CST. The current market for the when issued is 4.565/4.560% by comparison: in January the 20 Year sale delivered a yield of 4.423% https://t.co/DTSoyPcoWT