MBS LUNCH: 30 Year Bond Auction Results and Reactions
ByPosted To: MBS Commentary
The previously discussed auction concession must have been sufficient because the long bond auction went very well. Overall, auction demand was well above average—2.89 bids were submitted for every one accepted by the Treasury. 82% of the auction was taken down at the high yield of 4.679% (dealer bids). I should share the auction caveat before going any further…. success was driven by a hungry bid from from direct buyers who took home a record 29.5% of the issue . This massive support offset a very weak turnout from Indirect bidders, who were awarded only 23.9%. Primary dealers got 46.4% of the $13 billion…below average Here is a recap of the results: 29-YEAR 11-MONTH BONDS YIELDS High 4.679 pct Median 4.645 pct Low 4.580 pct PRICE/ACCEPTANCES Price 99.128159 Accepted at high 82.80 pct…(read more)