{"id":431962,"date":"2026-06-11T23:40:23","date_gmt":"2026-06-11T16:40:23","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/2026\/06\/u-s-treasury-to-auction-off-22-billion-of-30-year-bonds-at-the-top-of-the-hour\/"},"modified":"2026-06-11T23:40:23","modified_gmt":"2026-06-11T16:40:23","slug":"u-s-treasury-to-auction-off-22-billion-of-30-year-bonds-at-the-top-of-the-hour","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/2026\/06\/u-s-treasury-to-auction-off-22-billion-of-30-year-bonds-at-the-top-of-the-hour\/","title":{"rendered":"U.S. Treasury to auction off $22 billion of 30 year bonds at the top of the hour"},"content":{"rendered":"<div>\n<p>The US treasury will auction off $22 billion of 30 year bonds at the top of the hour. The auction is the third of three coupon auctions this week. The three year note auction was met with average demand. The 10 year auction was met with strong international demand which led to a solid (grade A-) distribution (negative tail, higher than average bid to cover, lower dealer support needed). <\/p>\n<p>The 30 year bond auction will determine the overall success of the issuance this week.<\/p>\n<p data-start=\"0\" data-end=\"136\">The 30-year Treasury bond is important because it reflects the market&#8217;s view of long-term growth, inflation, and U.S. fiscal health.<\/p>\n<ul data-start=\"138\" data-end=\"690\">\n<li data-section-id=\"170haef\" data-start=\"138\" data-end=\"250\">Higher 30-year yields can increase borrowing costs for businesses, infrastructure projects, and mortgages.\n<\/li>\n<li data-section-id=\"sl47x9\" data-start=\"251\" data-end=\"350\">\nIt is a key gauge of investor confidence in the government&#8217;s ability to manage deficits and debt.\n<\/li>\n<li data-section-id=\"a8hcfc\" data-start=\"351\" data-end=\"452\">\nRising yields often signal concerns about inflation, Treasury supply, or fiscal sustainability.\n<\/li>\n<li data-section-id=\"9a0bsg\" data-start=\"453\" data-end=\"558\">\nHigher long-term yields can pressure stock valuations by raising the discount rate for future earnings.\n<\/li>\n<li data-section-id=\"1cvjtl0\" data-start=\"559\" data-end=\"690\">\nPension funds and insurance companies closely monitor the 30-year yield because their liabilities extend decades into the future.\n<\/li>\n<\/ul>\n<p data-start=\"692\" data-end=\"893\" data-is-last-node=\"\" data-is-only-node=\"\">In simple terms: The 2-year Treasury reflects what investors think the Fed will do. The 30-year Treasury reflects what investors think about the U.S. economy, inflation, and debt over the long run.<\/p>\n<p data-start=\"0\" data-end=\"129\">When the U.S. Treasury auctions notes or bonds, traders focus on several key metrics to judge the strength or weakness of demand.<\/p>\n<p data-section-id=\"4z13rp\" data-start=\"131\" data-end=\"145\">High Yield<\/p>\n<p data-start=\"146\" data-end=\"266\">The high yield is the highest yield accepted at the auction and becomes the yield awarded to all successful bidders.<\/p>\n<ul data-start=\"268\" data-end=\"360\">\n<li data-section-id=\"1g2snqy\" data-start=\"268\" data-end=\"313\">\nHigher-than-expected yield = weaker demand.\n<\/li>\n<li data-section-id=\"w6jlm3\" data-start=\"314\" data-end=\"360\">\nLower-than-expected yield = stronger demand.\n<\/li>\n<\/ul>\n<p data-section-id=\"ynqs9i\" data-start=\"362\" data-end=\"370\">Tail (6 auction average -0.2 bps)<\/p>\n<p data-start=\"371\" data-end=\"532\">The tail measures the difference between the auction&#8217;s high yield and the yield where the bond was trading just before the auction (the &#8220;when-issued&#8221; yield).<\/p>\n<ul data-start=\"534\" data-end=\"675\">\n<li data-section-id=\"1c5a2yy\" data-start=\"534\" data-end=\"595\">\nPositive tail (high yield above WI yield) = weaker auction.\n<\/li>\n<li data-section-id=\"5hssza\" data-start=\"596\" data-end=\"675\">\nNegative tail or stop-through (high yield below WI yield) = stronger auction.\n<\/li>\n<\/ul>\n<p data-start=\"677\" data-end=\"689\">Example:<\/p>\n<ul data-start=\"690\" data-end=\"766\">\n<li data-section-id=\"18q3i5n\" data-start=\"690\" data-end=\"707\">\nWI yield: 4.50%\n<\/li>\n<li data-section-id=\"1o3xjzn\" data-start=\"708\" data-end=\"735\">\nAuction high yield: 4.53%\n<\/li>\n<li data-section-id=\"1ausv12\" data-start=\"736\" data-end=\"766\">\nTail: +3 basis points (weak)\n<\/li>\n<\/ul>\n<p data-section-id=\"kr9wwu\" data-start=\"768\" data-end=\"790\">Bid-to-Cover Ratio (6 auction average 2.41X)<\/p>\n<p data-start=\"791\" data-end=\"878\">The bid-to-cover ratio measures total bids received relative to the amount offered.<\/p>\n<p data-start=\"880\" data-end=\"935\">Formula:<br \/>\nBid-to-Cover = Total Bids \u00f7 Amount Offered<\/p>\n<p data-start=\"937\" data-end=\"949\">Example:<\/p>\n<ul data-start=\"950\" data-end=\"1031\">\n<li data-section-id=\"l5do4l\" data-start=\"950\" data-end=\"978\">\nTreasury sells $22 billion\n<\/li>\n<li data-section-id=\"1ihox58\" data-start=\"979\" data-end=\"1009\">\nReceives $55 billion in bids\n<\/li>\n<li data-section-id=\"1k3nrjp\" data-start=\"1010\" data-end=\"1031\">\nBid-to-cover = 2.50\n<\/li>\n<\/ul>\n<p data-start=\"1033\" data-end=\"1082\">Higher ratios generally indicate stronger demand.<\/p>\n<p data-section-id=\"o3s15s\" data-start=\"1084\" data-end=\"1106\">Direct Bidders (%) (6 auction average 22.6%)<\/p>\n<p data-start=\"1107\" data-end=\"1159\">Direct bidders submit bids directly to the Treasury.<\/p>\n<p data-start=\"1161\" data-end=\"1180\">Typically includes:<\/p>\n<ul data-start=\"1181\" data-end=\"1256\">\n<li data-section-id=\"16ip39y\" data-start=\"1181\" data-end=\"1206\">\nDomestic money managers\n<\/li>\n<li data-section-id=\"1oaa5uq\" data-start=\"1207\" data-end=\"1222\">\nPension funds\n<\/li>\n<li data-section-id=\"jajjqu\" data-start=\"1223\" data-end=\"1237\">\nMutual funds\n<\/li>\n<li data-section-id=\"1vauzct\" data-start=\"1238\" data-end=\"1256\">\nSome hedge funds\n<\/li>\n<\/ul>\n<p data-start=\"1258\" data-end=\"1334\">A higher direct percentage often suggests strong domestic investor interest.<\/p>\n<p data-section-id=\"1g4hdqf\" data-start=\"1336\" data-end=\"1360\">Indirect Bidders (%) (6 auction average 66.7%)<\/p>\n<p data-start=\"1361\" data-end=\"1392\">Indirect bidders are primarily:<\/p>\n<ul data-start=\"1393\" data-end=\"1464\">\n<li data-section-id=\"jnyo0\" data-start=\"1393\" data-end=\"1416\">\nForeign central banks\n<\/li>\n<li data-section-id=\"1ao14s9\" data-start=\"1417\" data-end=\"1441\">\nSovereign wealth funds\n<\/li>\n<li data-section-id=\"11u0jtd\" data-start=\"1442\" data-end=\"1464\">\nForeign institutions\n<\/li>\n<\/ul>\n<p data-start=\"1466\" data-end=\"1514\">This is often the most closely watched category.<\/p>\n<p data-start=\"1516\" data-end=\"1631\">A high indirect take is usually viewed as a positive sign because it indicates strong foreign demand for U.S. debt.<\/p>\n<p data-section-id=\"1vgukay\" data-start=\"1633\" data-end=\"1648\">Dealers (%) (6 auction average 10.7%)<\/p>\n<p data-start=\"1649\" data-end=\"1736\">Primary dealers are required to participate and buy any securities not taken by others.<\/p>\n<p data-start=\"1738\" data-end=\"1755\">Examples include:<\/p>\n<ul data-start=\"1756\" data-end=\"1875\">\n<li data-section-id=\"15a85x\" data-start=\"1756\" data-end=\"1795\">\nJPMorgan Chase\n<\/li>\n<li data-section-id=\"lyf7sl\" data-start=\"1796\" data-end=\"1835\">\nGoldman Sachs\n<\/li>\n<li data-section-id=\"wlg39x\" data-start=\"1836\" data-end=\"1875\">\nBank of America\n<\/li>\n<\/ul>\n<p data-start=\"1877\" data-end=\"2002\">A high dealer allocation is generally viewed as a negative because it means investors were less willing to absorb the supply.<\/p>\n<p data-section-id=\"xz0ej8\" data-start=\"2009\" data-end=\"2036\">Quick Auction Scorecard<\/p>\n<p>                            This article was written by Greg Michalowski at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The US treasury will auction off $22 billion of 30 year bonds at the top of the hour. The auction is the third of three coupon auctions this week. The three year note auction was met with average demand. The 10 year auction was met with strong international demand which led to a solid (grade [&hellip;]<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-431962","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/431962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=431962"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/431962\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=431962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=431962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=431962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}