U.S. Treasury sells $22 billion a 30 year bonds at a high yield of 4.844%

• High yield 4.844%
• WI level at the time of the auction 4.859%.
• Tail -1.5 basis points versus a six month average up +0.1 basis points.
• Bid-to-cover 2.43X vs six month average of 2.39X
• Directs (domestic buyers) 23.4% versus six month average up 22.3%
• Indirects 65.2% versus six month average of 63.2%
• Dealers 11.4% versus six month average of 14.4%

AUCTION GRADE: A-

The 30 year bond was met with solid demand with international buyers leading the charge. The indirect buyers took 65.2% comfortably above the 63.2% average. The dealers were left with only 11.4% while below the 14.4% average.

They bid to cover was slightly higher than average which was the only drawback. Buyers bid through the WI level by -1.5%.

The 30-year yield has extended its decline. It is down by -7.1 basis points at 4.839%

US stocks are pushing higher on the better results. The NASDAQ index is now up 62 points or 0.32% at 19678.17. The S&P index is up 19 points or 0.32% at 6042. The Dow is up 55 points or 0.13% at 42920.75.

This article was written by Greg Michalowski at www.forexlive.com.