Results of the US 30-year sale
- Prior was 2.295%
- Bid to cover 2.47 vs 2.28
Strong demand at the 30-year auction will put downward pressure on the dollar and USD/JPY in particular. It highlights real-money demand for bonds and the growing potential of some kind of interim top in yields.
Rates are coming under further pressure after this sale, which is a pretty big miss, especially in a reopening. Further down the curve, 10s are now down 3.7 bps to 1.628% after a high of 1.70% earlier.
Look for some positive spillover into risk assets as well.
