US treasury auctions off $19 billion of 30 year bonds at a high yield of 3.115%

• High yield 3.115%
• WI level at the time of the auction 3.133%.
• Tail -1.8 bps vs. six-month average of -0.4 basis points
• Bid to cover 2.44X vs six-month average of 2.33X
• Directs 16.34% vs six-month average of 17.6%
• Indirects 73.2% vs. six-month average of 66.6%
• Dealers 10.46% vs six-month average of 15.8%

Auction Grade: A

The 30 year auction was met with strong investor demand especially from overseas buyers. The in direct bidders came in at 73.2% well above the 66.6% six-month average. That helped lead to dealers only taking 10.46%. Lower dealer buying is indication of a strong auction is a result of domestic and international demand.

The tail of -1.8 basis points is well below the 6 month average.

The Bid to cover was comfortably above the six-month average as well.

The 3 year note auction at similar demand. The 10 year auction was a dud yesterday.

The better auction has helped the stocks. The NASDAQ NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term and S&P are trading back in positive territory with the NASDAQ index testing its 100 hour moving average at 11310.79. The NASDAQ index currently trades at 11308.25. The S&P index is back in positive territory up 3 points or 0.08% at 3822.19.

The Dow industrial average is still down by 53 points or -0.17% at 30932, but is well above its low at 30514.61.

/inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term