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30-Year Treasury Auction Gets a 'B' Grade

Treasury Seal
woodleywonderworks
Treasury Seal

It’s a B grade for the final Treasury auction of the week; a positive showing but not as strong as Wednesday’s 10-year.

Thursday’s $13 billion 30-year yielded 4.77 percent with a bid-to-cover ratio of 2.73.

Some may be surprised in the face of all the Greek and euro uncertainty, that Thursday's 30-year couldn't match Wednesday's high marks for the $21 billion 10-year auction.

Overall for the week, the supply of government debt moved well. All told, the government sold $82 billion of notes and bonds in the four auctions, beginning on Monday. The anxiety regarding the midweek assault of 4 percent in the 10-year note was still fresh in traders' minds.

Wednesday’s 10-year had a 3.90 percent with a bid-to-cover ratio of 3.72, and included 16 percent direct bidders and 43 percent indirect bidders.

The other two auctions were Tuesday’s $40 billion 3-year, which showed a 3.10 bid-to-cover ratio, and like Thursday’s auction, earned a B grade. The week began with Monday’s TIPS auction. All four are settled on April 15.