The result of Thursday’s 30-year bond auction:

So, what can we discern from the above?

Reuters says bidding was the second highest on record since the 30-year bond was reintroduced in February 2006, and notes the strong demand from indirect bidders, a somewhat rejigged category that includes foreign banks.

Meanwhile, Alea makes the following observations:

High Yield
Last month: 4.541%
Thursday: 4.238%

Allotted at High
Last month: 16.77%
Thursday: 85.35%

Bid-to-Cover Ratio
Last month: 2.54
Thursday: 2.92

The question is why?

Related links:
Treasuries, of bidders and bulls – FT Alphaville
Convexed – FT Alphaville

This entry was posted by Neil Hume on Friday, September 11th, 2009 at 10:28 and is filed under Capital markets, People. Tagged with 30-year bond, Treasuries. Edit this entry.