Bond Market Update

Auction Reaction

• U.S. Treasuries hover above their opening levels, but a bit below their morning highs after nestling into a sideways range over the past few hours. Treasuries have held their ground in immediate reaction to the just completed $22 bln 30-yr bond reopening, which met solid demand. The sale drew a high yield of 4.773%, which stopped through the when-issued yield by a tenth of a basis point. The bid-to-cover ratio (2.36x) was just a touch below average (2.37x) while indirect takedown (65.4%) was just above average (63.5%).
• Yield Check:
  • 2-yr: -6 bps to 3.51%
  • 3-yr: -6 bps to 3.55%
  • 5-yr: -6 bps to 3.70%
  • 10-yr: -4 bps to 4.12%
  • 30-yr: -2 bps to 4.78%