US 30-year bond auction ahead at 1700GMT
US to sell USD 16bln in 30 year bonds at 1700GMT
According to Socgen:
- from a relative-value perspective, the 30-year sector appears rich in asset swap vs the previous 30s auction cycle. Recently, five of the six 30-year auctions have tailed, and cover ratios have been easing
- Socgen argues that this shows that, 'in general investors are shying away from the 30y auction'. They go on to say that the '30-year yield reached an all time-low at end August, and although it has since increased slightly, it is unlikely that the upcoming auction will attract favourable bidding'