Results of the $38 billion reopening

US 10 year yields
  • WI at 1.520% vs 1.515% on the bid/offer ahead of the sale
  • 1.5143% was the yield in the same issue ahead of the sale
  • Bid to cover 2.38
  • Prior bid to cover was 2.37

There was a pretty big bid in bonds ahead of the sale and the yield fell to the lows of the day, which is counter-intuitive to what everyone feared. The results have been lackluster and a 1 bps tail could cause some worries but when you compare it to the pre-auction move, it's tame.

I think the market will shrug this off. Onto 30s tomorrow.