US $12 billion, 30-year bond reopening
- Prior sale was 2.274%
- Bid to cover 2.130% -- lowest since Feb
- Prior bid-to-cover was 2.40%
Second weak auction in a row. That's not going to help the risk trade but it will help the US dollar, especially against the high yielders, emerging markets and commodity currencies.
Quick pop in USD/JPY too.
Gundlach and Bill Gross have been talking about cutting down on government bonds and they look to be following through.
