US treasury to auction off $25 billion of 30 year bonds at the top of the hour

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The US treasury is to auction off $25 billion of 30-year bonds at the top of the hour. The auction success or failure will be judged on how the results of the major components, compares to the 6-month averages.

• High Yield:

  • Previous: 4.671%
  • Six-auction average: 4.451%

• Tail:

  • Previous: 1.0 bps
  • Six-auction average: 0.3 bps

• Bid-to-Cover:

  • Previous: 2.37x
  • Six-auction average: 2.38x

• Dealers:

  • Previous: 17.3%
  • Six-auction average: 16.6%

• Directs:

  • Previous: 18.3%
  • Six-auction average: 16.6%

• Indirects:

  • Previous: 64.4%
  • Six-auction average: 66.8%

Yields in the US are mixed with the shorter and lower and the longer and higher:

• two year yield 4.823%, -1.9 basis points
• 5-year yield 4.491%, -0.9 basis points
• 10 year yield 4.488%, +0.6 basis points
• 30-year yield 4.651%, +1.9 basis points

Going into the auction, US stocks are higher:

• Dow Industrial Average average up 0.49%
• S&P index up 0.34%
• NASDAQ index up 0.26%
• Russell 2000 up 0.50%