US sells 29 year and 11 month bonds at high yield of 2.79%

Bid to cover at 2.21 times

The US sold $12 bln of 29 year and 11 month bonds at a high yield of 2.79%.

• Allotted at the high 20.40%
• The bid to cover was an unimpressive 2.21x. The last auction came in at 2.32x. The low for the year is 2.19x. The high is 2.34x
• Primary dealers take 34.4%. Directs 6.82% and indirects 58.78%
• US awards 34.4% of bonds to primary dealers

Another so-so auction. Yesterday, the 10 year sale also had somewhat tepid demand from bidders.

Below is a history of the auction results for the 30 year bonds. The highs since 2015 has been about 3.18%. The low from July 2016 was around 2.18%.

The 10 year yield is trading at 2.1795% up 1.2 bp. The 30 year is up about 1 bp today.